China's largest coal producer Shenhua Group has launched the world's first project of direct coal liquefaction in its Shendong coal field in Inner Mongolia. It uses indigenous Chinese technologies.

When completed after two phases of construction, the project will have a capacity of 5 million-ton oil products. The production line for the first phase has begun to be built and will be put into production in 2007 when the 24.5 billion yuan facility will be able to turn out 3.2 million tons of oil products.

The second phase will be put into operation in 2010 which will produce 1.8 million tons of oil products.

By People's Daily Online