More on the coal-derived kerosene fuel that was used in yesterday's launch of Tianlong-2.
Traditionally, kerosene used by China's space program is refined from petroleum, and not just any petroleum: only naphthenic crude from the Karamay oil field in Xinjiang is deemed suitable. However, with increasing demand for kerosene from China's space industry, supply depletion is a real threat. Naphthenic crude is also available from foreign sources, such as Russia, but for reasons of strategic security, China began pursuing alternative sources.
The 165th Institute of the Sixth Academy of CASIC took the lead and discovered that certain fuel oils produced from coal liquefaction are chemically suitable for producing aerospace grade kerosene. Since 2016, in cooperation with China Energy Investment Corporation, the 165th Institute has successfully developed an industrial process for deriving aerospace kerosene from coal and set up an annual production capacity of 5,000 tons of kerosene, to be expanded to 30,000 tons during the 14th Five-Year Plan.
Interestingly, the 165th Institute didn't stop there. It has also cooperated with Shaanxi Coal Group to develop an industrial process for producing kerosene from tar oil.
Images below show the team from the 165th Institute at the launch site of Tianlong-2.