China is hoping to ease its rising dependence on imported oil by promoting alternative energy sources including oil-from-coal. But scientists have warned that such projects produce large amounts of greenhouse gases.
China "may put an end to projects which are designed to produce petroleum by liquefying coal," Xinhua News Agency said.
"Liquefied coal projects consume a lot of energy, though the successful industrialization of liquefied coal could help reduce the country's dependence on petroleum," the official from the National Development and Reform Commission, who was quoted on condition of anonymity on Saturday.
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