Coal-rich Ordos in the northern autonomous region of Inner Mongolia is expected to gain official approval from the central government for a two-million-tonne per annum indirect coal-to-liquids (CTL) project by the end of the year, local government authorities said recently.<br /> <br /> The project, to be developed by Yitai CTL Co., Ltd., would be built over three years with total investment estimated at 35 billion yuan, said local authorities on April 19.<br /> <br /> Upon full operation, the project would produce synthetic diesel, synthetic gasoline, naphtha, liquefied gas, and other chemicals, with estimated annual revenues of 20 billion yuan and net profit of 2.2 billion.<br /> <br /> Yitai CTL Co., Ltd., a joint venture established by Yitai Group, Yitai Coal Co., Ltd. and state-owned Inner Mongolia Mining Group Co., Ltd., has invested in a preliminary project with an annual capacity of 160,000 tonnes, which has successfully produced synthetic diesel that conforms to EU emission standard during testing.<br /> <br /> This project stands to be China’s first indirect CTL production line that utilizes indigenous technologies.<br /> <br /> <p> On the national level, CTL development meets the national energy security and environmental protection policy. According to Ordos-based economists, CTL projects would also benefit local coal producers, which are struggling with sluggish demand and record low prices. </p> <p style="text-align:center;"> <img src="/upfiles/news/image/20140430/20140430114853_3095.jpg" alt="" /> </p>