Sector News

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

November 10, 2017
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

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