Inner Mongolia Expands Coal-to-Chemicals as Iran War Lifts Oil Prices
Updated
Updated · Bloomberg · Jun 12
Inner Mongolia Expands Coal-to-Chemicals as Iran War Lifts Oil Prices
3 articles · Updated · Bloomberg · Jun 12
Summary
Inner Mongolia plans to widen coal use in chemical manufacturing, deepening investment in a sector that converts the fuel into petrochemical substitutes.
Higher oil prices from the Iran war have improved coal-to-chemicals economics, making the process more competitive against oil-based production.
Local officials are promoting the expansion as a way to strengthen China’s energy independence by relying more on domestic coal feedstock.
The push adds to pressure on China’s climate goals because coal-to-chemicals is carbon-intensive even as the country tries to curb emissions.