China's energy consumption structure is characterized by its prominent coal-dominant feature. In 2017, coal accounted for 60.4% of the nation's primary energy mix, followed by oil (18.8%), natural gas (7.0%), and non-fossil energy sources (13.8%).""'This coal-centric energy structure will persist for a considerable period.' Since the beginning of this century, China has made significant progress in coal reduction, lowering coal's share in primary energy consumption from 69% in 2000 to 60% in 2017—a reduction achieved over 17 years. Nevertheless, coal's proportion remains substantially higher than the global average of 28%.
China's high economic dependence on coal is unlikely to undergo fundamental change in the short term, and coal's strategic role in current development remains unshakable. In 2017, the National Energy Administration's Coal Deep Processing Industry Demonstration "13th Five-Year Plan" emphasized: 'Coal is China's primary energy source and critical raw material**. Moderately developing the coal deep processing industry serves both as a strategic reserve for energy technologies and production capacity, and as a vital measure to advance clean and efficient coal utilization while ensuring national energy security.'
The plan prioritized five demonstration models during the 13th Five-Year Plan period:
Coal-to-oil
Coal-to-natural gas
Low-rank coal upgrading
Coal-based chemicals
Coal and petroleum co-processing—specifically requiring 'leveraging large refineries for industrial demonstration of coal-petroleum integration, adopting coal gasification-centered hydrogen production systems to reduce natural gas consumption.
Confronted with China's energy reality of being rich in coal but poor in oil and gas, 'controlling and reducing coal consumption is imperative to further improve air quality,' emphasized Han Feng, an NPC deputy and General Manager of Sinopec Qilu Petrochemical Company. Simultaneously, promoting clean and efficient coal utilization is essential to meet national demands for green energy, which holds strategic significance for safeguarding energy security.""How to achieve this goal? As a major refining province, Shandong's transition toward refining-chemical integration hinges on hydrogen—a critical resource for fuel upgrading. While chemical by-products supply some hydrogen, they fall far short of refining requirements. The most economically viable solution lies in direct coal gasification technology: a proven, environmentally sound, and low-cost method. Indeed, coal-to-hydrogen represents a crucial pathway for clean and efficient coal utilization—a technological cornerstone for energy resilience.
In light of this, Han Feng proposed two recommendations:
Emancipate minds and expedite the revision of statistical metrics for total coal consumption by consolidating fuel coal and feedstock coal into a unified classification system, facilitating targeted policies to incentivize clean and efficient coal utilization.
Implement 'structural repositioning': Encourage overall coal consumption reduction while prioritizing reallocated coal resources for chemical feedstocks, thereby advancing high-value industrial transformation." (Translated from China Energy Net)
