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 14, 2024

Nadja Håkansson appointed Chief Executive Officer of thyssenkrupp Uhde

Energy & Chemical Value Chain

The future CEO of thyssenkrupp Uhde, Nadja Håkansson, has held various management positions at Siemens and Siemens Energy and looks back on over 18 years of national and international experience in the areas of supply chain management, operations, sales and corporate management.

April 14, 2024

Neste and Lotte Chemical team up to scale renewable plastics from used cooking oil

Energy & Chemical Value Chain

Neste and South Korean company Lotte Chemical have partnered on a project to elevate the sustainability profile of chemicals and plastics. The partnership’s ambition is to replace fossil resources with renewable raw materials that offer a lower carbon footprint.

April 14, 2024

EU chemical industry confidence shows upward trend

Energy & Chemical Value Chain

At least the confidence in the chemical sector has been seeing an upward trend and the trade balance is recovering as destocking seems to be coming to an end. Citing projections from the European Central Bank, CEFIC states that the level of inflation is expected to fall from 5.4% in 2023 to 2.3% in 2024.

How can we help you?

We're easy to reach