Coal-into-oil products

US-based Headwaters Inc. has announced plans with Shenhua Group Corp. Ltd to build in China the world’s first commercial plant to turn coal into diesel fuel and gasoline, a move that could help China reduce oil imports and cut pollution. Headwaters subsidiary, Hydrocarbon Technologies Inc., will provide the technology license, process design and technical services for the plant. The USD 2 billion Chinese facility will able to produce 50,000 barrels a day of cleaner, low-sulphur diesel fuel and gasoline from about 13,000 tons of coal. Plant construction is expected to begin in early 2003, following approval from US and Chinese governmental agencies. The facility, located about 80 miles south of Baotou in Inner Mongolia, should be operational in 2005. Shenhua Group said it plans to build three more coal liquefaction plants in the Shengdong Coalfield of China, which spans the Shaanxi Province and Inner Mongolia.

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