Domestic “Coal-to-oil” has seen a surge in momentum and the National Development and Reform Commission has strictly applied for a “licence” for only one project so far.

On the 12th, it was learned from the Energy Development Bureau of the National Development and Reform Commission that although various localities have planned on the "coal-to-oil" project and reported numerous projects to be approved, the disputes based on their costs and profits have been very large, and industrial risks are difficult to assess. So far, the country has The NDRC still approved only the Shenhua Group's “coal oil” project.
Shenhua Group is a pioneer in the domestic "coal-to-oil", and its "coal-to-oil" project that has been built in Inner Mongolia has been regarded as a representative of the national energy alternative strategy. In addition to this, the "imperial outline" of the group's "coal oil" is being enlarged. Shenhua Xinjiang Energy Co., Ltd., established on August 4th this year, has stated that it is necessary to build Xinjiang into the largest "coal-to-oil" base in China. According to another source, Dow Chemical and Shenhua Group are actively promoting the feasibility study of coal-to-oil production in Shaanxi. In this regard, the officials of the National Development and Reform Commission clearly told the reporter that Shenhua Group must apply for approval again if it adds a new “coal oil” project in addition to the “coal oil” project in Inner Mongolia.
With the exception of Shenhua Group, almost all coal-producing provinces and cities in the country are brewing "coal oil" projects. In Shanxi, the Tunliu coal mine, which is currently under construction and claims to have the world’s largest derrick, is preparing to build a “coal oil” demonstration plant with an annual output of 160,000 tons. After the success of the trial, a coal with an annual output of 5.2 million tons will be built. Base synthetic oil plant. Not only that, the province also plans to build an ultra-large enterprise group with one million tons of coal-based synthetic oil as its core between several large coal fields in Zhangzhou and Datong in the next five to 10 years. A large-scale coal enterprise in Shandong has invested 10 billion yuan to develop and build a multi-million-ton coal liquefaction base in Guizhou Province. At the same time, the company signed an agreement with Shaanxi Province, investing 9.526 billion yuan in Shaanxi to develop coal liquefaction oil. It is said that Shandong Seven Coal Group has already or is planning to build a "coal oil" base in the west.
It is understood that the above is only part of the "coal oil" project surfaced. Most of the projects submitted “Feasibility Study Reports” or “Pre-feasibility Study Reports” but none were approved. According to an earlier prediction by the Coal Chemical Research Branch of the Coal Science Institute of China, by 2020, China’s coal-to-oil capacity will reach 36 million to 39 million tons, and the investment will reach 100 billion yuan. Officials from the National Development and Reform Commission stated that the domestic coal-to-oil project has seen a surge in momentum.

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