In accordance with Chinese government’s strategies of energy development and Western Development, COHG entered into energy sector in 2007 and will take it one of its key businesses in the future. COHG has initiated a coal-chemical processing project in Baotou of Inner Mongolia at the beginning of 2007. The project plans to use local coal resources and to build a large coal-chemical industry base at Baotou with related supporting facilities, which is supposed to yield 3.6 million tons of methanols a year. The 1.8 million methanol project has already been approved by Inner Mongolia SDPC.