Be vigilant for foreign coal gasification technology testing ground

China's coal-based energy structure necessitates a focus on national conditions and the vigorous development of clean coal technologies. Among these, the most critical is the efficient and clean conversion of coal into syngas (a mixture of CO and H2), which is achieved through coal gasification technology. China has already developed its own coal gasification technology with full intellectual property rights and completed successful industrial demonstrations. Despite this, foreign coal gasification technologies continue to be introduced repeatedly, raising concerns among experts that China has become a testing ground for international technologies. Coal gasification serves as the foundation for various industries, including coal-based chemicals, synthetic fuels, combined-cycle power generation, polygeneration systems, hydrogen production, and fuel cells. It is a key and leading technology in these sectors, holding significant strategic value for economic and national security. Given the massive domestic market, many large foreign companies are now competing fiercely in China’s coal gasification sector. Experts estimate that during the "Eleventh Five-Year Plan" period, China’s coal gasification capacity reached about 100 million tons. With numerous methanol, ammonia, coal-to-olefin, and coal oil plants under construction, the demand for coal gasification technology remains strong. Since the 1980s, China has imported various foreign coal gasification technologies, such as Lurgi fixed-bed, U-Gas fluidized-bed, Texaco slurry coal gasification, and more recently, BGL fixed-bed and Shell pulverized coal gasification. These technologies have continued to dominate the market, creating a heavy reliance on foreign solutions. According to incomplete data, the imported coal gasification equipment consumes approximately 58,000 tons of coal per day. Patent licensing fees alone have exceeded 200 million U.S. dollars, not to mention the high costs of proprietary equipment and on-site technical services, which amount to hundreds of millions in foreign exchange. While early introductions of coal gasification technology have contributed to China’s economic growth, many of these technologies are not fully mature or optimized for local conditions. As a result, China has become a testing ground for foreign technologies. Currently, no other country uses as many different types of coal gasification technologies as China. This has led to costly and inefficient practices due to blind and premature technology imports. For example, the Shell pulverized coal gasification technology has been widely adopted across the country. However, it requires a long period of adaptation and practical implementation, and past experiences suggest that China will bear significant costs. The high investment has already placed a heavy burden on some manufacturers. In response, a research team led by Professor Yu Zunhong at the Institute of Clean Coal Technology, East China University of Science and Technology, has developed a multi-nozzle opposed coal-water slurry gasification technology with full independent intellectual property rights after over two decades of research. This technology has achieved successful industrialization and holds nearly 20 invention and utility model patents. A similar multi-nozzle opposed pulverized coal gasification technology has also passed pilot tests. Due to the success of this domestic technology, foreign companies have had to significantly reduce their patent licensing fees. Despite these achievements, the technology still faces resistance during its widespread application. Experts urge the government to stop the repeated introduction of foreign technologies and instead promote the use of domestically developed, independent technologies. They recommend implementing supportive policies such as loans, tax credits, interest subsidies, and preferential access to electricity to encourage enterprises to adopt homegrown solutions. This will not only accelerate the large-scale application of China’s coal gasification technology but also boost related domestic industries while saving substantial patent fees.

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