With a budget of 5.8 billion yuan (716 million US dollars), the new company, known as Green Coal Power Co., will develop technology to produce hydrogen through gasifying coal, and technology for collecting and storing carbon dioxide produced during power generation.

The company hopes to build the power plant within 15 years using 400,000 kw hydrogen turbine generating units and fuel cells.

The company is set up by China Huaneng Group, one of the country's power giants in cooperation with other power groups China Datang Corp, China Guodian Corp, China Power Investment Corp,Shenhua Group, the country's biggest coal producer, State Development and Investment Corp, China National Coal Group.

In a meeting with representatives of those companies on Friday, Chinese Vice-Premier Zeng Peiyan hailed the new company as another step by energy giants in China to develop environmentally friendly energy technology.

It represents a step forward for China to develop clean energy technology and reduce greenhouse gas emissions, he said.

He called on the new firm to develop core technology for the program while conducting cooperation and exchanges with other parts of the world to commercialize the technology for zero-pollution gasified coal-fired power plants.

Coal dominates China's energy supplies as three quarters of the country’s installed power generating capacity comes from coal-fired power plants, which consumes half of the country's annual coal output, said Zeng.

Coal will continue to be a dominant source of energy for China for a long time to come, said the vice-premier.