Following were the flaws in the Baoshan Project: Firstly, the plant was situated on geologically unstable ground; secondly, China did not have the high-quality, low-sulfur content-coking coal required by the plant; thirdly, there was no deep-water port along the Yangzi River; and fourthly, the amount of electricity needed to run the massive iron and steel complex would exceed the output capacity of the entire eastern Yangzi River energy grid.