Abstract: To develop coal chemical industry would enable taking full advantage of China’s coal resource, and has great significance for national energy security. However, huge uncertainty is faced by coal chemical industry, which is not only reflected by deepening market-oriented reform but also by constraint from policies regarding environmental and climate issues. This paper introduces the application of real options analysis (ROA) into techno-economic appraisal of energy utilization technologies, involving analysis of uncertain factors, modeling and solving techniques. Based on review of current research status, in combination with development background for China’s coal chemical industry, the necessity and feasibility of application of the ROA theory is analyzed, indicating that the ROA theory has much potential for application.