At the 2014 China International Coal and Chemical Industry Exhibition and the China International Coal and Chemical Industry Development Forum, Pan Aihua, Deputy Director of the Department of Raw Materials Industry at the Ministry of Industry and Information Technology, highlighted that while modern coal chemical technology in China is maturing, the industry is facing several growing challenges. The main issues include high water and coal consumption, significant carbon dioxide emissions, high investment costs, and elevated risks. Additionally, he pointed out that the development of the modern coal chemical industry has become overheated, emphasizing the need for stronger planning, policy guidance, and regulatory measures to ensure sustainable and healthy growth.

Pan also emphasized that industrial development must not lead to uncontrolled increases in coal consumption. It should be accompanied by scientific water management, rational layout, and careful consideration of the pressure from carbon emission reductions. Looking ahead, the focus should be on reasonable planning, appropriate development, optimized resource allocation, improved efficiency, deepened reforms, and the introduction of capital to support long-term stability and progress in the sector.

Li Yongwu, President of the China Petroleum and Chemical Industry Association, noted that the scale of China’s coal chemical industry has grown rapidly in recent years. In 2013 alone, coal-to-oil projects produced 1.7 million tons, methanol output reached 29 million tons, and coal-to-gas projects generated 2.7 billion cubic meters of natural gas. These achievements placed China at the top of the global coal chemical industry in terms of scale. According to estimates, by 2020, coal-to-oil and coal-to-gas production capacities are expected to reach 30 million tons and 50 billion cubic meters, respectively.

Wang Xianzheng, President of the China Coal Industry Association, shared insights during the forum, stating that the government has increasingly supported the coal chemical industry in recent years. According to incomplete data, by 2020, coal chemical projects already in operation or awaiting approval would consume 750 million tons of coal. Projects such as coal-to-oil, coal-to-olefin, and coal-based natural gas are expected to generate 160 million tons of oil and gas equivalent. This shift marks a transformation in coal usage, moving it from a purely fuel-based resource to both fuel and raw material, signaling a more diversified and efficient approach to energy utilization in China.