China has been moving aggressively to wean itself from reliance on petroleum both because of terrible pollution problems in the big cities like Beijing an Shanghai and because it has few domestic petroleum reserves. Recently the Chinese government has put a lot of emphasis on coal to liquid synthetic petroleum, but now appears to moving away from that path.
Coal to liquid production facilities take a huge amount of investment to build, consume a lot energy themselves and ultimately are not renewable. Instead, the Chinese government will be refocusing on biomass fuels. All of this is good because coal to liquid is probably one of the worst possible options from an environmental standpoint. 119 percent worse.

[Source: Xinhua]

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