On March 30, the Yulin Clean Coal-to-Fuel Demonstration Project was officially signed and launched, marking a key step in China’s clean coal strategy.
Original By NLS
On March 30, the Yulin Clean Coal-to-Fuel Demonstration Project was officially signed and launched, marking a key step in China’s clean coal strategy. Backed by the Shaanxi Provincial Department of Industry and Information Technology and the Development and Reform Commission, the project aims to establish the world’s largest clean coal-based fuel production facility.
The project has a planned production capacity of 5 million tons per year, with an initial investment of ¥52.9 billion to build a mega-plant capable of producing 2.4 million tons annually. Once fully operational, it is expected to generate more than ¥60 billion in annual revenue and create over 20,000 jobs. Beyond fuel production, the project is set to break foreign monopolies on key materials such as POE photovoltaic film and ultra-high molecular weight polyethylene (UHMWPE), boosting China’s domestic production rate of these materials to 95%.
Covering 9,954 acres—an area nine times the size of Universal Beijing Resort—the facility will incorporate 13 cutting-edge technologies, including the world’s largest 9×220,000-cubic-meter coal gasification system and a carbon capture unit capable of storing 4 million tons of CO₂ annually. It will also feature three industry-first technologies: the latest generation of indirect coal liquefaction from Synfuels China, POE elastomer co-production, and an advanced UHMWPE production system—strengthening China’s position in global coal-to-chemicals innovation.
The project is designed to set new standards in clean energy. Its ultra-clean gasoline and diesel will contain less than 1 ppm of sulfur—90% lower than the Euro VI standard. A dedicated solar-powered hydrogen production facility will also be built, with plans to replace 30% of conventional hydrogen with green hydrogen. Additionally, a large-scale biodegradable materials production line will support efforts to combat plastic pollution.
According to the project’s director, advanced CCUS (Carbon Capture, Utilization, and Storage) technology will allow for the sequestration of 2.8 tons of CO₂ for every ton of fuel produced—equivalent to the annual carbon absorption of 150 trees. These measures will significantly reduce emissions while positioning the project as a model for sustainable industrial development.