Annex II

Annex II

Long Term Environmental and Economic Impacts of Coal Liquefaction in China

This is a specific activity of the Protocol on Cooperation in the Field of Fossil Energy Technology Development and Utilization between the Department of Energy of the U.S. (USDOE) and the Ministry of Science and Technology (MOST) of China as amended and extended and is commonly referred to as the “US-China Fossil Energy Protocol”.


To develop research and communication activities related to the development of the coal liquefaction sector in China including environmental and economic assessments of the technologies and carbon management potential. An assessment of the technologies, deployment level, potential production levels, and overall impacts of alternative coal utilization facilities, including liquefaction, gasification, and chemical producing applications would provide direct benefits to the United States in the evaluation of alternative coal utilization processes. The potential for developing a significant geologic carbon sequestration activity in China directly benefits the United States as well as all countries of the world. The ongoing work with Chinese companies and the National Energy Administration (NEA) within the National Development and Reform Commission (NDRC) in China also supports activities of the Department of Energy under Annex II–A (Clean Fuels).


Within the context of this overall objective, there are three areas of specific research efforts as well as communication, collaboration and training activities.

  1. The first objective is to understand the implications for the U.S. of the coal-to-liquid (CTL) project activities in Inner Mongolia to the extent possible given data available to the WVU research team.
  2. The second objective is to develop a database of alternative coal gasification technologies to better understand and evaluate the impacts, penetration, and development of alternative clean coal utilization technologies and activities in China.
  3. The third objective relates to aspects of carbon management. This is based on previously developed assessments of sequestration potential and storage factors (e.g., assessment of the water quality of saline aquifers in the Ordos Basin) as well as efforts to build on the knowledge developed by USDOE/FE in the area of carbon capture and sequestration (CCS) to support the development of large scale geologic sequestration projects in the Ordos Basin.
  4. The collaboration, communication and training activity directly supports USDOE/FE, including outreach activities in support of Annex II, communication on clean coal utilization and conversion, and the development of U.S. and Chinese cooperation related to energy by providing training and support to leaders of the Chinese energy sector and the opportunity to build collaborations with U.S. industrial partners.