TAKING OFF: Yinchuan, capital of Ningxia Hui Autonomous Region, has been witnessing rapid industrial development in recent years (WANG PENG)

From a vibrant greenbelt along the ancient "Silk Road" to a coal-fired modern industrial center, the tiny region of Ningxia, covering an area of 66,400 square km in northwest China, has never lost its shine as a bright spot on China's economic landscape.

But after years of torrid growth, its dynamic growth engine, though still roaring along, appears to be at a muddy crossroads. Typifying the prospects and problems facing China as a whole, Ningxia's rapid industrialization driven by the extraction of rich coal resources has given rise to a pollution nightmare. For such a fragile ecosystem where encroaching deserts are swallowing farmland and grassland, any further environmental damage is unbearable. The Yellow River, curving through the region, is also at risk. Farming and industrial production threaten to pollute and suck dry the river that has fed the region for centuries.

No country in history has emerged as a competitive industrial power without incurring some environmental damage that takes time to heal. The question for Ningxia is how to minimize pollution and sustain economic growth since its coal dependence defies a quick fix.

The experience of the Ningdong Energy and Chemical Industry Base in the eastern part of Ningxia provides an insight into how a green coal industry could prop up the economy and at the same time curb environmental degradation. By combining a series of energy-conserving and low-emission technologies, it is striking a balance between nature and business.

A string of numbers shows its weighty significance for the regional economy. Having started construction in 2003, the base is expected to record production capacities of 130 million tons of coal, 20 million tons of coal chemicals and 16 million kw of power generation by 2020 when it is completed.

"The base is taking advantage of commodity price drops and a marked financial easing to accelerate its construction," Wang Jianmin, a senior official with the Ningxia Autonomous Regional Development and Reform Commission, said in an interview with Beijing Review. "Improvements in management and services there also appeal to investors at home and abroad."

In addition, its proximity to the Yellow River has helped secure the water supplies needed for power generation and chemical industries, he said.

Reduce, reuse, recycle

For decades, coal mining has been a lifeline for millions of people in Ningxia. It is therefore hard to see how the region can turn its back on such a reliable fuel. But in Ningdong, coal-related industries are shrugging off their former dirty image. Coal-burning plants at the base are subjected to more stringent emission standards and waste recycling requirements. In addition, the base's high quality coal-having fewer impurities and more chemical reactivity-ensures green production.

Coal gasification-converting coal into gas for use as a feedstock for making chemicals like olefin and methanol-has been a pioneering project of the base. But its viability faces the intractable problem of waste gases being released into the environment. In response, advanced air separation was introduced to remove impurities from waste gases, making them reusable for synthetic ammonia and urea production. Carbon dioxide released from coal-fired power generation is also piped back in for use in urea production, effectively eliminating air pollution.