Coal liquefaction uses high pressure and high temperature processes to transform coal into refined oil.

“The project consists of two phases of construction, and after the second is completed, the plant aims to yield 5 million tons of oil products annually and greatly reduce China’s reliance on crude oil imports,” Zhang told the newspaper.

“The fluctuating international oil market has a negative impact on China's robust economy, thus making coal liquefaction even more important in terms of energy safety and China’s sustainable development.

“Coal is a reliable substitute for oil in the future as China boasts abundant coal reserves. And coal liquefaction will help provide China with enough oil products.”