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11/22/2010 07:52 am ET | Updated May 25, 2011

Coal Liquefaction: China's CO2-Intensive Solution To Diminishing Oil Reserves (VIDEO)

In the quest for easy energy, what's one way to emit even more CO2? Reuters reports on one of China's strategies to feed its growing demand for oil -- coal liquefaction.

Coal company Shenhua produces 3,000 tons of diesel daily from coal through the process. A company manager claims that coal liquefaction is an investment in the future, but there is a dark side to this seemingly simple solution to diminishing oil reserves. Coal liquefaction produces twice as much CO2 as traditional coal industries, according to Reuters. And China is already the world's leading emitter of greenhouse gases. Also, up to eight tons of water are required to produce just one ton of oil, posing a challenge for water-starved mining towns.

Is this dirty process really a decent solution to our energy problems?

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