| The characteristic of China’s energy is rich in coal, poor in oil, and having little gas. Coal is China’s major energy resources, but at present, China’s energy security is worsening. While energy as a strategic resource for economic development, China oil imports has increased year by year,55.2%dependence on foreign, surpassed the United States (53.5%). Energy is a decisive resource to support the healthy development of China’s economy. The growing demand for energy, relatively extremely fragile energy supply as well as the lagging policy security system of energy security, however, posed a serious threat to China’s energy security. Therefore, the implementation of alternatives to oil was proposed to ensure energy security.This paper systematically analyzed the status of China energy, the macroeconomic, economic and technical feasibility of China’s development of coal-to-oil industry, and the motivation and ability of Shenhua to develop coal-to-oil industry. By rigorous comparison of non-oil and gas resources, biomass fuel and coal-based oil, comprehensive analysis of direct coal liquefaction (DCL) and indirect liquefaction project and Shenhua diversified expansion strategy, meticulous research on construction, operation, benefit, market of DCL demonstration project, the necessity of large-scale development of direct coal liquefaction project which has significant economics was concluded. China’s energy structure was studied by using Five-competitive model. By using SWOT model to analyze the strengths, weaknesses, opportunities and threats of the development of Shenhua direct coal liquefaction, the medium and long term plan of coal-to-oil development was formed, and the prospects of DCL industry was proposed. A variety of environmental factors were matched and combined to make a series of selectable tactics for Shenhua to develop coal to oil industry. Finally, the strategic goal was proposed, the strategic plan was made clear and the main mission was launched for Shenhua direct coal liquefaction development. |
