Sinopec coal project gets state backing
Sinopec Engineering, the plant construction arm of energy giant China Petrochemical, says orders for coal-to-chemical projects - its fastest-growing sales driver - are backed by the government despite carbon emissions and water scarcity concerns.
Sinopec Engineering, the plant construction arm of energy giant China Petrochemical, says orders for coal-to-chemical projects - its fastest-growing sales driver - are backed by the government despite carbon emissions and water scarcity concerns.
"Our 101 billion yuan [HK$127.9 billion] of outstanding orders are backed by real contracts, and the projects have received various government approvals," said president Yan Shaochun.
The company's net profit for the first half rose 10.8 per cent to 2.21 billion yuan.
Since most of the mainland's coal resources are in the arid northern and northwestern regions, Yan said, the company was researching methods to cut pollution and water usage.
He said present technology for converting methanol to chemicals was 9.5 per cent more efficient than the previous one. Methanol is the intermediate product in the conversion of coal into chemicals.
Beijing is keen to use its ample coal resources to replace crude oil as a source of fuel and chemical feedstock. Mainland firms have successfully built projects to turn coal into liquid fuel and natural gas, although mass commercialisation is only beginning.