Be vigilant for foreign coal gasification technology testing ground

China's coal-based energy structure necessitates a focus on national conditions and the vigorous development of clean coal technologies. Among these, the most critical is the efficient and clean conversion of coal into syngas (a mixture of carbon monoxide and hydrogen), which is achieved through coal gasification technology. China has already developed its own coal gasification technology with full intellectual property rights and successfully demonstrated it at an industrial scale. Despite this progress, foreign coal gasification technologies continue to be introduced, raising concerns among experts who warn that China has become a testing ground for overseas innovations. Coal gasification serves as the foundation for various industries, including coal-based chemicals, liquid fuels, combined-cycle power generation, polygeneration systems, hydrogen production, and fuel cells. It is a core and leading technology in these sectors, holding significant strategic importance for economic and national security. Given China’s massive market, many large foreign companies are now competing fiercely in the domestic coal gasification sector. Experts estimate that during the "Eleventh Five-Year Plan" period, China’s coal gasification capacity reached around 100 million tons. With numerous methanol, ammonia, coal-to-olefin, and coal oil plants under construction, the demand for advanced gasification technology remains strong. Since the 1980s, China has imported various coal gasification technologies, such as Lurgi fixed-bed, U-Gas fluidized-bed, Texaco coal-water slurry, and more recently, BGL fixed-bed, Shell pulverized coal, GSP entrained bed, and Texaco entrained bed gasification. These imports have continued, despite the availability of domestic alternatives. According to incomplete data, China’s imported coal gasification equipment consumes approximately 58,000 tons of coal daily. The patent licensing fees alone have exceeded $200 million, not including costly proprietary equipment and on-site technical service charges. It is estimated that foreign exchange costs for equipment could reach hundreds of millions of dollars. While early technology introductions helped accelerate China’s economic growth, many of these technologies were not fully mature, leading to challenges. China is the only country in the world using such a wide range of gasification technologies, and some blind or premature imports have come at a high cost. For example, the widespread adoption of Shell’s pulverized coal gasification technology has required significant investment, placing a heavy burden on local manufacturers. However, through sustained research and collaboration, China has made significant breakthroughs. Prof. Yu Zunhong and his team at East China University of Technology developed a multi-nozzle opposed coal-water slurry gasification technology with full independent intellectual property rights. This technology has been successfully industrialized and holds nearly 20 invention and utility model patents. A similar multi-nozzle opposed pulverized coal gasification system has also passed pilot tests. Thanks to this innovation, foreign companies have had to reduce their patent licensing fees significantly. Despite these achievements, the technology still faces resistance in its widespread application. Experts urge the government to halt the repeated introduction of foreign technologies and instead promote domestic solutions. They suggest implementing supportive policies, such as loans, tax incentives, and access to electricity, to encourage enterprises to adopt homegrown technologies. This will not only accelerate the large-scale use of Chinese coal gasification technology but also boost related industries while saving substantial patent fees.

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