China's National Energy Administration released the Energy Sector Energy-saving
and Carbon-cutting Action Plan (2026–2028), directing a restructuring of the
refining and coal-to-liquids/gas sectors. Refining will follow a capacity
reduction-and-replacement policy; new refineries must meet benchmark
energy-efficiency standards. The plan calls for stronger capacity and technology
reserves for coal-to-liquids/gas, higher conversion efficiency, and unit energy
consumption and carbon emissions per product to meet or exceed industry advanced
levels. It urges accelerated industry upgrades, orderly replacement of
steam-turbine drives with electric-drive systems, deeper integration of refining
and coal-chemical units with renewables, encouragement of large-scale
substitution with green power and green hydrogen while gradually reducing
fossil-fuel-based hydrogen, and scaled deployment of CCUS.
