[Peakoil] PRC: Betting big on coal-to-oil projects

[Antony Barry]

PRC: Betting big on coal-to-oil projects

Source: Asia Times

"To ease its increasing thirst for oil, PRC is throwing tens of  
billions of yuan into so-called coal-to-liquid (CTL) projects, which  
permit the conversion of coal into a liquid fuel that can substitute  
for crude-oil derivatives in many applications. If successful, this  
move has the potential to shake up the current energy markets greatly  
at home and abroad.

Analysts see China's investment in CTL projects as a big gamble. If  
successful, the projects could reap staggering profits. However, if  
oil prices drop below $30, they will suffer losses. Moreover, mass  
production of CTL fuel, on the assumption that China has really  
mastered the required know-how, may not bring down oil prices but  
push up coal prices by boosting demand for coal."

Full article: http://www.atimes.com/atimes/China_Business/HE23Cb06.html

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