Sector News

Air Products forms $3.5-billion coal-to-syngas JV in China

November 10, 2017
Energy & Chemical Value Chain

Air Products has announced that it has signed an agreement to build a $3.5 billion coal-to-synthesis gas (syngas) production facility at Yulin, China, jointly with Yankuang Group (Zoucheng, China), one of the largest energy and chemical companies in the country.

In accordance with the agreement, Air Products and Shaanxi Future Energy Group Co. (SFEC), a subsidiary of Yankuang Group, intend to form an Air Products majority-controlled joint venture (JV) that would build, own, and operate air separation units (ASUs), gasification, and a syngas cleanup system to supply the SFEC site.

The ASUs are expected to produce approximately 40,000 metric tons/day (TPD) of oxygen to support the production of about 2.5 million cubic meters/hour of syngas, Air Products says. SFEC would supply coal, steam, and power and receive syngas under a long-term, onsite contract. Air Products currently supplies SFEC’s phase 1 coal-chemical complex at Yulin with 12,000 metric tons/day of oxygen.

The addition of phase 2 would make this complex one of the largest coal-to-fuel and -chemicals facilities in China, with SFEC phase 2 producing 4 million metric tons/year of liquid fuels and downstream chemicals, says Air Products.

The two companies will finalize the agreements at the earliest opportunity, with the overall project expected onstream in 2021, according to Air Products. The deal was signed as part of US President Donald Trump’s state visit to China this week.

Separately, Air Products signed an agreement in September for a $1.3-billion coal-to-syngas JV at Changhzi, China.

By Kartik Kohli

Source: Chemical Week

comments closed

Related News

April 20, 2024

Borealis makes multi-million investment in Finnish cracker furnaces

Energy & Chemical Value Chain

The investment enables the steam cracker to increase the share of renewable and recycled raw materials used in its (ethylene and propylene) production. The move supports the Borealis Strategy 2030 for a circular economy. The Porvoo investment program is expected to be completed in 2025.

April 20, 2024

BP cuts down leadership team to ten members

Energy & Chemical Value Chain

Murray Auchincloss, bp’s CEO, said in a statement: “As I set out in February, BP’s destination from IOC [international oil company] to IEC [integrated energy company] is unchanged – and we need to deliver as a simpler, more focused, and higher-value company.

April 20, 2024

Versalis buys Italian compounder Tecnofilm

Energy & Chemical Value Chain

Founded in 1972, Tecnofilm has expanded its product portfolio over the years to offer a wider range of compounds and functional polymers for various industrial applications and technical articles. The company has patented several of its products.

How can we help you?

We're easy to reach