| Based on the actual case, the authors analyzed the cost of coal to liquids (CTL), which mainly consists of manufacturing costs, cost of sales, administrative expenses, and tax and financial costs. Then the authors calculated CTL manufacturing cost interval in current conditions. It turns out that the competitiveness of CTL industry can be profitable when the international oil price is higher than 50 US dollars per barrel, and its costs have decreasing space. Moreover, the competitive power and industrial prospect on CTL production were analyzed by using Potter’s Diamond Model, which shows that many different revenue policies should be implemented to maintain the growing period of CTL industry. |