Xinhua: China to curb blind investment in coal-to-gas

China's National Energy Administration (NEA) has told local authorities to curb irrational development of coal-to-oil and coal-to-gas projects, after new technology sparked an investment spree regardless of environmental and economic realities.

The country will ban coal-to-gas projects with an annual output of no more than 2 billion cubic meters and coal-to-oil schemes that produce 1 million tonnes or less, according to an NEA document published on Tuesday.

Projects larger than those will be subject to regulatory approval from the State Council, China's cabinet, the NEA said.

Previous data showed nearly 70 percent of energy consumed in China comes from coal, a ratio much higher than in developed countries. The NEA noted that developing coal-to-oil and coal-to-gas is significant for ensuring China's energy security and the shift towards cleaner energy use.

However, some regions have been enthusiastic about building new plants, and there are signs of blind development regardless of realities in environment, water resources, as well as technological and economic capabilities, the NEA said. MORE