Oil shale in China is an important source of unconventional oil. A total Chinese oil shale resource amounts of 720 billion tonnes, located in 80 deposits of 47 oil shale basins. This is equal to 48 billion tonnes of shale oil. At the same time there are speculations that the actual resource may even exceed the oil shale resource of the United States. The oil shale industry was established in China already in the 1920s. After decrease in the production, the industry started to increase and as of 2008; several companies are engage in the shale oil production or the oil shale-based power generation. After 2005, China became the largest shale oil producer in the world. In 2011, the country produced about 650,000 tonnes of shale oil. Most of production facilities are Fushun-type retorts. At the end of 2006, the Fushun Shale Oil Plant was the largest oil shale plant in the world. In 2005, the China National Oil Shale Association was established in Fushun. The main oil shale research institution in China is the China University of Petroleum. Reserves From 2004 to 2006 China undertook the national oil shale evaluation. According to the evaluation, it has been estimated that a total Chinese oil shale resource amounts of 720 billion tonnes, located in 80 deposits of 47 oil shale basins. This is equal to 48 billion tonnes of shale oil. The proven oil shale reserves comprise about 36 billion tonnes. The principle Chinese reserves with commercial importance lie in Fushun (Liaoning), Maoming (Guangdong), Huadian and Nong'an (Jilin), and Longkou (Shandong). The Longkou deposit has the highest oil content (about 14%). The Fushun oil-shale and coal deposit of Eocene age is located in north-eastern China, south of Fushun, Liaoning. Coal and oil shale are in a small outlier of Mesozoic and Tertiary sedimentary and volcanic rocks underlain by Precambrian granitic gneiss. The thickness of the layer of oil shale varies from to with the average of . The lacustrine origin oil shale is presented in the Jijuntun Formation, overlying the Guchengzi Formation consisting coal and underlying of green mudstone of the Xilutian Formation. The Tertiary age Maoming oil-shale deposit is long, wide, and to thick. The ore is yellow brown and the bulk density is about 1.85. The oil shale contains 72.1% ash, 10.8% moisture, 1.2% sulfur, with a heating value of 1,745 kcal/kg (dry basis). It is not suitable for