Doing business in Asia, Japan, China, Hong Kong, Taiwan, South Korea, and Russia.

Sinopec is Asia's largest oil refiner.

Now they want to be Asia's largest clean coal manufacturer.

Sinopec has teamed up with China National Coal, Shanghai's Shenergy Group, China Yintai Investment and Inner Mongolia Manshi Coal Group on a $2.6 billion project to convert coal to gas.

The completion date is set for 2010.

Of course, China wants to become less dependent on foreign oil...don't all countries.  But, China thinks this project will not only help reduce that dependence it will also help cut pollutants by 10% in the next 3-4 years.

Sounds good on two fronts, eh?

The Deutsche Bank says it costs 10 times more to build a coal to gas refinery and requires three times the water to make.

My hat is off to China for not only looking at this alternative fuel source, but taking active measures to see the plan come to fruition.

I have always thought that things cost more because people charge more, and someone will pay the price.

Perhaps, with this experience Sinopec will be able to show how the costs can be reduced. That will save all of some more serious costs in the future.

I wonder if the other big oil companies have such plans on their agendas?

What do you think?