Shell Will Make Oil From Coal

Anglo-Dutch oil group Royal Dutch/Shell considers the possibility of investing in coal-to-liquid projects in China through a technology agreement with the country's largest coal producer, Shenhua Group, which is planning an initial public offering next year. CTL technology allows coal to be broken down into small molecules with hydrogen to form oil molecules that are then refined into diesel, petrol and other petroleum products.

The companies signed a memorandum of understanding this week to work together on the production of liquid fuel from coal.

Shell external affairs director in China Nick Wood said, that these projects could lead to
future investment opportunities.