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Coal-to-liquids projects in China under water and carbon constraints

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  • Guo, Meiyu
  • Xu, Yuan

Abstract

Coal-to-liquids projects have become more and more significant in China, while water and carbon constraints as well as profitability concerns make them highly controversial for policy makers. This article analyzes the situations and shows that the limitation of coal resources could be relaxed through using coal in far regions, especially in Xinjiang, which are less developed at present. Coal-to-liquids projects could greatly reduce the negative influence of transportation costs. The limitation of water resources might also be solved with desalinating fossil water from deep saline aquifers. Since water costs are only a small fraction of the total cost, the economy of coal-to-liquids projects are not affected much. In addition, the use of fossil water could promote carbon dioxide capture and storage (CCS) and reduce CO2 emissions. However, given the current coal and oil prices, the potential profitability of those projects with or without CCS is seriously negative in all major coal producing regions.

Suggested Citation

  • Guo, Meiyu & Xu, Yuan, 2018. "Coal-to-liquids projects in China under water and carbon constraints," Energy Policy, Elsevier, vol. 117(C), pages 58-65.
    • Handle: RePEc:eee:enepol:v:117:y:2018:i:c:p:58-65
    DOI: 10.1016/j.enpol.2018.02.038
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    References listed on IDEAS

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    1. Rong, Fang & Victor, David G., 2011. "Coal liquefaction policy in China: Explaining the policy reversal since 2006," Energy Policy, Elsevier, vol. 39(12), pages 8175-8184.
    2. Mantripragada, Hari Chandan & Rubin, Edward S., 2011. "Techno-economic evaluation of coal-to-liquids (CTL) plants with carbon capture and sequestration," Energy Policy, Elsevier, vol. 39(5), pages 2808-2816, May.
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    Citations

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    Cited by:

    1. Li, Junjie, 2024. "Spatialized carbon-energy-water footprint of emerging coal chemical industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    2. Xu, Bin & Lin, Boqiang, 2018. "Do we really understand the development of China's new energy industry?," Energy Economics, Elsevier, vol. 74(C), pages 733-745.
    3. Zhao, Jinyang & Yu, Yadong & Ren, Hongtao & Makowski, Marek & Granat, Janusz & Nahorski, Zbigniew & Ma, Tieju, 2022. "How the power-to-liquid technology can contribute to reaching carbon neutrality of the China's transportation sector?," Energy, Elsevier, vol. 261(PA).
    4. Li, Junjie & Yan, Yulong & Wang, Yirong & Zhang, Yifu & Shao, Lianwei & Li, Menggang, 2024. "Spatial-successive transfer of virtual scarcity water along China's coal-based electric chain," Energy, Elsevier, vol. 288(C).
    5. Yang, Qingchun & Yang, Qing & Xu, Simin & Zhang, Dawei & Liu, Chengling & Zhou, Huairong, 2021. "Optimal design, exergy and economic analyses of coal-to-ethylene glycol process coupling different shale gas reforming technologies," Energy, Elsevier, vol. 228(C).
    6. Zhang, Yueling & Li, Junjie & Yang, Xiaoxiao, 2021. "Comprehensive competitiveness assessment of four coal-to-liquid routes and conventional oil refining route in China," Energy, Elsevier, vol. 235(C).

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