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NW China coal liquefaction project begins operation

Xinhua, September 12, 2015 Adjust font size:

An indirect coal-to-liquid project with a yearly output of over one million tonnes has been put into operation in northwest China's Shaanxi Province, local authorities said Saturday.

Covering an area of 303 hectares in Yulin City, the project can produce 1.15 million tonnes of oil using 5 million tonnes of raw coal per year. The project, with a total investment of 16.4 billion yuan (2.57 billion U. S. dollars), is expected to see an annual sales volume of 7.6 billion yuan and yearly profits of 1.6 billion yuan, according to the provincial department of industry and information technology.

The project is operated under the Shaanxi Future Energy Chemical Company and 82 percent its equipment is produced domestically.

The company plans to increase its yearly oil production capacity to 5 million tonnes by 2020.

Clean coal-to-oil replacement technology is important for the energy security of China, a country rich in coal but lacking oil. Endi