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Dependence on oil needs to be cut

www.chinanews.cn 2006-02-13 09:22:20

(Source: China Daily)

Sinopec workers drill for oil in Puyang, Central China's Henan Province
in this photo taken on January 31, 2006.

Feb. 13 - The central government is working on a long-term plan to
increase the use of alternative fuels to reduce the dependence on oil.
Coal gas and renewable energy sources such as biomass and solar power are
expected to become "major alternatives," according to the National
Development and Reform Commission (NDRC).
Wu Yin, a senior energy official with NDRC, said at a weekend meeting
that the recommendations of a national leading group from several cabinet
departments are part of an "oil alternative strategy."
He said "the essence of the report" will be incorporated in China's 11th
Five-Year Plan (2006-10), which will be discussed at the annual session
of the National People's Congress the supreme legislature next month.
China aims to raise the ratio of renewable energy in total consumption to
13 per cent by 2020, up from the current 7 per cent.
Zhang Guobao, vice-minister of the NDRC, said the key to achieve the goal
is to increase the use of nuclear, wind and solar energy so that
dependence on coal and oil could be cut.
The use of renewable energy has been growing at more than 25 per cent in
China the highest in the world and Zhang said solar power consumption in
the country accounted for 40 per cent of the global total at the end of
2004.
The government has decided to significantly raise the availability
ethanol as vehicle fuel, which is currently being used in five provinces.
Corn, wheat, potatoes and sugarcane are major raw materials for the
alternative fuel.
Given the abundance of reserves in the country, coal liquefaction a clean
and relatively efficient way of producing synthetic products is also high
on the agenda.
China Oil News reported last week that the government plans to spend
US$15 billion to build plants that annually manufacture 16 million tons
of oil products from coal in the next five to 10 years.
The plants will be located in coal-rich Shanxi, Shaanxi and Yunnan
provinces, as well as the Inner Mongolia Autonomous Region.
According to earlier reports, Shenhua Group, the nation's largest coal
producer, is building a 24.5 billion yuan (US$2.96 billion) coal
liquefaction plant in Inner Mongolia, the first of its kind in the
country.

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