ABSTRACT
Coal is the largest source of energy in China. Because coal is the most important energy resource in China, it has always been a key component in China's economic policy. During the first year of dual-track scheme reform, the coal producers were permitted to sell their surplus, free-market price was still not allowed. From 1989 to 1998, the coal mining policy focused on safety regulations. The coal price decontrol was a very gradual process from roughly 1993 to 2005. In 1993, the planned coal price was abolished for all uses other than power generation. Since the coal price decontrol, the price of coal has been rather volatile and largely moved in tandem with oil price. The first pilot project for methanol vehicles in China was initiated by the Sino-American Scientific Collaboration in 1995. Synthetic natural gas (SNG) is methane gas made from coal. The SNG technology is far more complex than coal gas and requires high capital investment.
