Super Dimension Technology Era

Datong City, Jin Province.

The newly established Northern Coal Corporation is located in Datong City.

General Secretary Wu Chang Gongzheng and Chief Technical Director Sun Guangyou, inside a coal chemical plant in Datong City.

"Lao Wu, technically there is no problem with coal-fired oil. After all, Germany vigorously promoted coal-fired oil after World War II. The problem is the cost..." Sun Guangyou hesitated.

Wu Changgong certainly knows the advantages and disadvantages of coal-based oil, coal-based gas, and coal-based chemicals.

The advantages are cheap raw materials, huge domestic reserves, and good strategic security; the disadvantages are that the processing cost is too high, a huge amount of water is consumed, the waste slag recycling process is lacking, and the pollution is relatively large.

Coal-based oil refining and processing costs are very high. Coal-based oil only has an advantage when the crude oil price is no less than US$70/barrel. In recent years, crude oil prices have been sluggish, which has greatly suppressed the enthusiasm of many companies for coal-based oil.

Coalified oil consumes a lot of water. The domestic coal distribution is more in the west and less in the east, more in the north and less in the south, while the distribution of water is just the opposite.

Calculated based on the production of 1 ton of oil, coalified oil requires 3-3.3 tons of coal and 14-14.3 tons of water, while a refinery consumes 1.5 tons of crude oil and 7.5 tons of water.

Obviously there are problems with these, but Wu Changgong knows that the advancement of coal-based oil cannot be delayed without delay.

Because there are now four nuclear fusion power plants in operation in the country.

As for the domestic energy structure, many people may think that it has changed to be dominated by oil, but in fact it is still dominated by coal.

In the past ten years or so, traditional fossil fuels will still be the main body of world energy production and consumption in the world's energy production and consumption structure for a long time to come.

Especially in China's energy structure, coal accounts for about 70% of primary energy.

According to statistics, the national coal output in 2011 was approximately 3.5 billion tons, of which nearly 2 billion tons of coal were consumed in power generation. In 2015, domestic coal output reached 3.9 billion tons, and an additional 400 million tons of coal were imported.

Among these coals, coal-fired power generation accounts for more than half of the total consumption.

China's coal production has ranked first in the world for many years. According to the International Energy Agency's World Energy Outlook, China's coal demand will still account for more than 60% of total energy consumption by 2020 (due to the confidentiality of nuclear fusion power plants ).

Although in recent years, China has actively adjusted its energy consumption structure, the proportion of coal consumption has slowly declined, and the proportion of high-quality clean energy consumption has gradually increased.

From 1990 to 2009, the proportion of coal consumption in China dropped from 76% to 70%, a decrease of about 6% in 20 years.

However, coal still accounts for the majority of China's energy structure, accounting for more than two-thirds.

With the successive commissioning and deployment of nuclear fusion power plants, there will be overcapacity of more than 2.2 billion to 2.6 billion tons of coal.

In addition, the domestic electric vehicle craze is also rapidly reducing oil consumption. Regardless of China's crude oil imports, it is still maintained at about 450 million tons per year. In fact, the oil reserves in it already account for a large proportion.

As of October 5, 2015, internal data from the National Energy Reserve Center showed that it had a total of 230 million tons of crude oil and refined products in reserve.

Wu Changgong is one of the few people who knows about the existence of nuclear fusion power plants. He certainly knows that the domestic energy structure is rapidly changing from coal as the mainstay and oil as the second priority to nuclear power as the mainstay.

If things don’t change now, with the rollout of nuclear fusion power plants, more than half of domestic coal companies will need lunch boxes.

Therefore, the Northern Coal Corporation, the Northeast Coal Corporation, and the Northwest Coal Corporation, these three all-people-shareholding coal consortiums, were established silently.

In order to enhance the coal chemical industry strength of Jin Province and Qin Province, State Grid has planned to deploy 12 Jinwu II nuclear fusion reactors and build six medium-sized nuclear fusion power stations in the two places.

These medium-sized nuclear fusion power stations will supply cheap electricity to the coal chemical industry of Northern Coal Corporation.

Utilizing this cheap electric energy, Northern Coal Corporation will launch a comprehensive coal chemical industry layout.

Consumption of water resources is large? Go to the sewage recycling plant.

The waste slag recycling process is not good? Just use money and electricity to do it.

Coal chemical industry pollutes a lot? Directly use electricity to deal with pollutants and easily recycle waste.

The average domestic industrial electricity price is 0.6 yuan per kilowatt hour, while the subsidized electricity price for nuclear fusion power plants is 0.03 yuan per kilowatt hour.

If the price of electricity drops to one-twentieth of the current level, the comprehensive cost of coal chemical industry is expected to be reduced to 10 to 30%.

This means that the production cost of coalified oil per barrel drops to US$7 to US$21.

Moreover, with the promotion of nuclear fusion power plants, the overall production cost of society will become lower and lower, which will further reduce the production cost of coal chemical industry.

2.2 billion to 2.6 billion tons of coal can produce 730 million to 860 million tons of coalified oil. In addition, China itself can produce 210 million tons of crude oil every year.

All added up, it can reach 940 million to 1.07 billion tons of oil.

Currently, the world's three largest oil producers are the Saudi Emirate, the United States, and Lucia, and the fourth is China.

Among them, the Lucia Federation produces 10.3 million barrels of oil per day, equivalent to an annual output of 510 million tons. The cost of oil production is US$25 per barrel.

The United States is the world's second largest oil producer, accounting for 11.94% of the world's total oil production. It is also the largest consumer of oil resources, with a daily output of 10.59 million barrels of oil, equivalent to an annual output of 530 million tons, of which the production cost of shale oil is 37 ~$40 per barrel.

Saudi Arabia, the largest oil producer, accounts for 13.24% of global oil production. It produces 11.75 million barrels of oil per day, equivalent to an annual output of 584 million tons, with a production cost of US$3 to US$10 per barrel.

In other words, once coal-based oil is fully launched, it will mean that China will become the world's largest crude oil producer, and its production costs will be comparable to those in the sand.

The Nether Palace has conducted a comprehensive strategic deduction. Coal-based oil is a powerful weapon that can shake the American sword-petroleum hegemony.

For example, the Datong coal-based oil plant currently under construction is a plant with an annual output of 45 to 60 million tons of coal-based oil.

Northern Coal Corporation has deployed six coal-to-chemical plants of the same scale.

Northeast Coal Corporation has 4, and Northwest Coal Corporation has 3.

In addition, there are already more than a dozen coal-based oil plants, and it is expected that by around 2018, the total coal-based oil output will reach 600-700 million tons.

Wu Changgong did not tell Sun Guangyou and others about the nuclear fusion power station due to confidentiality reasons.

"Guangyou, listen, domestic subsidies will be implemented for coal chemical oil. Anyway, your external caliber is that the coal chemical refining process has been improved, resulting in a significant reduction in production costs."

"Uh... isn't this self-deception?" Sun Guangyou said with a strange expression.

Wu Changgong said seriously: "Anyway, you don't have to worry about the sales. As long as you go all out to study the production process, improve the refining process and slag recycling as much as possible."

"Okay then!" Sun Guangyou didn't know what was going on above him, to do such a thankless thing.

After Sun Guangyou inspected the Datong coal-based oil plant, he hurried to a coal-based oil plant that had been put into use before.

Research and development work on coal chemical refining processes is carried out there.

As personnel and funds continue to be in place, the three major coal corporations are moving very quickly, and the construction of nuclear power plants of the State Grid is also progressing at a fast pace.

On the other hand, Huang Mingzhe has provided a large number of scientific researchers to the coal chemical industry through the Academy of Sciences, the Academy of Engineering, the Ivy Alliance, and the Truth Society.

Under this nationwide system, the field of coal chemical industry is advancing by leaps and bounds.

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