Prime Minister N.Altanhuyag’s Speech

23th of 1, 2014
Dear guests and representatives, this forum in which we discuss the development of the coal to liquid technology in Mongolia is timely and very important.  

Today, all over the world, fuel and energy consumption is increasing while its sources are decreasing.  It is estimated that the price of raw petroleum, which is the main source for energy, will rise over the long-term.  As a result, countries are investing a lot of money into researching new sources that are unique and fitting for them. Nowadays, we have the ability both financially and technologically to use coal to make products made with petroleum.  

We will not only use coal to make energy, but we’re also able to make fuel, chemical and many other kinds of products, and cheap yet high quality synthetic products as well.  China, our southern neighbor, made a strategic decision to reduce its dependence on imported fuel by producing petroleum products from coal. As a result of this, today this sector has developed to become an economically profitable and large independent industrial sector. They have called the 21st century “the age of coal chemistry”.  

Mongolia has a wealth of coal stores.  We are able to export both highly efficient coked coal and coal for energy.  The majority of this coal is brown coal and using this type of coal for making liquid fuel and chemical products is becoming a reality based on both the economy and international trends.The government policy of Mongolia also has made it a goal to develop the technology for deep coal processing. In the future, it is very important that they substantially support this high-risk and capital-intensive sector through their policies by creating a pleasant legal and tax environment.  

Making liquid fuel from coal not only will lower our dependence on fuel imports, but will also be laying the foundation for the development of the chemical industry.  Geographically, we are very close to the countries of northeast Asia such as China, Japan and Korea. They are the world’s biggest consumers of petroleum products.This means that the stage will be set so that in the future Mongolia will become an exporter of chemical coal products, gas and liquid fuel.We do not need support for the implementation of just one or two projects, but there needs to be a comprehensive vision and policy that includes both the coal-chemistry and energy sectors.The platform of the new government for changes states that it will show full support to industries working on coal gasification and coal liquefaction in order to make liquid fuel. That expresses our interest and shows the importance we give to this technology.

Our scientists have been researching the subject of making liquid fuel from coal for many years and have established a good knowledge base.  To develop a sector that requires such a high level of technology and know-how, it is important to resolve the issue of appointing a qualified and able workforce.  To accomplish that important task, we have national scientists and the educational institutions.  It is commendable that over the last few years some large national companies are developing CTL projects and are slowly reaching the level of implementation. Furthermore, we can reach the best solution only when the government works with scientists, researchers and the private sector.Our government will acknowledge and utilize the guidelines brought forth through this forum.  I hope the forum activities are successful.
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