China unlikely to approve any new coal-to-liquids projects

China will likely continue to withhold approvals of new coal-to-liquids projects this year as the government shifts its focus to more efficient means of reducing reliance on imports and conserving energy, the state-controlled Xinhua News Agency reported. The government suspended all but two CTL projects in 2008. CTL projects were initially pursued to reduce reliance on oil imports, but they consumed great amounts of water, which is soon to become scarcer. Thus, the government has taken the path of expanding refining capacity to meet domestic oil product demand, and encouraging the use of nuclear power and cleaner energy sources such as hydro, wind and solar power to reduce dependency on imported oil. (February 1, 2011)