China Energy Investment, one of China’s largest miners, will soon begin the construction of a $24bn facility to turn coal into oil products and provide feedstocks to the nation’s growing petrochemicals industry.

According to several media reports, the facility – situated in Xinjiang and due to come online in 2027 – will be powered by renewable energy.

When fully functional, the facility will make approximately four million tonnes of coal-to-liquids (CTL) products annually.

CTL technology enables the conversion of abundant coal into products such as gasoline, diesel, jet fuel or a variety of petrochemicals.

Of the annual total, more than three million tonnes will be generated via direct liquefaction, which converts coal into liquids directly without having to rely on intermediate steps.

According to Mining Technology‘s parent company, GlobalData, China’s coal production in 2023 reached 4.53bt.

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China’s coal industry is already responsible for 70% of global coal mine methane emissions.

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