Chinese officials have said they will revive a multibillion-dollar coal gasification project, in part due to global gas supply disruptions caused by the U.S. and Isreal’s war with Iran.
The so-called Fuxin project began in 2011. The strategy, which was launched by state-owned China Datang Corp. with an estimated price tag of $3.7 billion, was halted three years later. Officials at the time cited technical and environmental issues, along with cost and market considerations, for the suspension.
Bloomberg on April 19 reported that China’s surplus of coal, along with damage to gas supply infrastructure in the Middle East, has led Chinese officials to look at restarting the project. A local newspaper report, citing the project’s general manager, said China Datang plans to bring the plant online in October. Reports said China Datang resumed construction of the project in Fuxin, in Liaoning Province in northeast China, last fall. Additional reports have said China has as many as 13 coal-to-gas projects either in the planning stages or under construction. Those reports said operation of all those projects could increase synthetic gas production capacity in China to an amount equal to 12% of the country’s current gas supply.
Global Energy Monitor, a research group, earlier this year said China could bring up to 85 coal-fired power generation units online in 2026. The government’s latest five-year plan calls for more energy development in regions like Xinjiang in the western part of the country, an area of cheap coal that would bring more profit if converted to gas, according to analysts. to support the country’s economy and energy security. even as the country builds more renewable energy projects.
“China began planning those coal-based projects well before the Middle East war,” said Wang Haohao, an analyst with China-based OilChem. Haohao told the Financial Post, “Improved profitability is encouraging investors to accelerate construction.”
as part of the China Energy Engineering Group’s “Coal to Nuclear,” or C2N, strategy.
—Darrell Proctor is a senior editor for POWER.
