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Current practice and future projection for coal-to-SNG in China

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  • Jianchao, Hou
  • Zhiwei, Wang
  • Liu, Pingkuo

Abstract

With the rapid development of economy in recent years, China's supply and demand gap for energy gradually increased. To alleviate the problem of the insufficient reserves of natural gas in China, coal to substitute natural gas (coal-to-SNG) is considered to be a promising option, especially for urban use. However, the coal-to-SNG industry of China started late and the technology is relatively backward. Therefore, the development of China's coal-to-SNG industry needs the corresponding recommendations. Based on the understanding of the current technical conditions and market environment of coal gasification in China, as well as the endowment of coal resources and the policy environment, this paper makes a strategic analysis on China's coal-to-SNG industry. This paper mainly uses the PEST (Politics, Economy, society, Technology) analysis method and SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis method. Policy factors are mainly analyzed from three aspects of political system, policy promulgation and international agreements. Economic factors are focused on three aspects of Industrial structure, natural gas demand and economic costs. Social factors are discussed from three aspects of social status quo, environmental protection and social development. Technical factors are evaluated from three aspects of coal type, water consumption and carbon emissions. The SWOT analysis method is the analysis of the coal-to-SNG industry in four aspects including the advantages, disadvantages, opportunities and threats. Through the coal-to-SNG analysis, this paper puts forward some suggestions for the development of the industry.

Suggested Citation

  • Jianchao, Hou & Zhiwei, Wang & Liu, Pingkuo, 2022. "Current practice and future projection for coal-to-SNG in China," Resources Policy, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:jrpoli:v:75:y:2022:i:c:s0301420721003858
    DOI: 10.1016/j.resourpol.2021.102376
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    References listed on IDEAS

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    1. Li, Hengchong & Yang, Siyu & Zhang, Jun & Kraslawski, Andrzej & Qian, Yu, 2014. "Analysis of rationality of coal-based synthetic natural gas (SNG) production in China," Energy Policy, Elsevier, vol. 71(C), pages 180-188.
    2. Li, Sheng & Ji, Xiaozhou & Zhang, Xiaosong & Gao, Lin & Jin, Hongguang, 2014. "Coal to SNG: Technical progress, modeling and system optimization through exergy analysis," Applied Energy, Elsevier, vol. 136(C), pages 98-109.
    3. Huo, Jinwei & Yang, Degang & Xia, Fuqiang & Tang, Hong & Zhang, Wenbiao, 2013. "Feasibility analysis and policy recommendations for the development of the coal based SNG industry in Xinjiang," Energy Policy, Elsevier, vol. 61(C), pages 3-11.
    4. Ding, Yanjun & Han, Weijian & Chai, Qinhu & Yang, Shuhong & Shen, Wei, 2013. "Coal-based synthetic natural gas (SNG): A solution to China’s energy security and CO2 reduction?," Energy Policy, Elsevier, vol. 55(C), pages 445-453.
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    3. Luo, Lianfa & Liu, Peiyao & Zhu, Fangjing & Sun, Yongping & Liu, Lingna, 2022. "Policy objective bias and institutional quality improvement: Sustainable development of resource-based cities," Resources Policy, Elsevier, vol. 78(C).

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