Pavlodar and Karaganda regions could become sites for producing diesel fuel from coal. The declared capacity of each project is 100,000 tonnes per year. Naz Dan Group and Alfa Plast already hold subsoil use licenses, but so far nothing has gone beyond paperwork: there are no construction timelines, no confirmed profitability, and no sources of financing.
The technology in question is called coal-to-liquids. Coal is first gasified, turning it into a mixture of carbon monoxide and hydrogen. The synthesis gas is then purified and passed through a Fischer-Tropsch reactor, where liquid hydrocarbons, including the diesel fraction, are formed under the action of catalysts. The world’s largest producer of such fuel is South Africa, where Sasol has been supplying the country with motor fuel made from coal for decades.
The economics of any such project remain the central question. The process is energy-intensive, requires large capital investment, and is sensitive to oil prices. At the same time, coal’s role in the global economy is changing: major consumers are cutting burning, and export markets are shrinking. Deep processing looks like a way to preserve the value of coal feedstock by turning it into a high-value-added product.
In June 2026, Kazakhstan’s Ministry of Energy, together with coal chemistry and coal mining companies, prepared a draft roadmap for developing coal chemistry for 2026–2031. In addition to the diesel projects, it includes production of metallurgical coke, as well as ammonia and urea.
A subsoil use license grants the right to develop a deposit and carry out related activities. It does not mean that a plant has been built, financed, or has proven its profitability. The Ministry of Energy’s statement does not disclose commissioning timelines, the production cost of the future fuel, or financing sources.
For comparison, in Russia similar technologies are being developed by the All-Russian Thermal Engineering Institute. In September 2026, it completed a feasibility study for a modular Arctic-grade unit for producing synthetic diesel from coal. The target output is 15,000 tonnes per year, with a payback period of about nine years. The difference in scale reflects different objectives: the Russian project aims at energy independence for isolated territories, while the Kazakh one targets commercial production for the domestic market.
Background
Kazakhstan ranks tenth in the world in coal reserves, at about 33.6 billion tonnes, which at current production rates is enough for more than 300 years. The largest deposits are concentrated in the Karaganda and Turgay basins, at Shubarkol and Zhalyn in Central Kazakhstan, as well as in the Ekibastuz and Maikuben basins and at Karazhyra.
Coal chemistry could become a way for Kazakhstan to extend the life of its coal industry amid changing demand. But for now, the announced projects are at the license stage, and their real economics remain an open question.
Source: TsDU TEK
Image: dprom.kz
