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

comments closed

Related News

September 25, 2022

France and Sweden both launch ‘first of a kind’ hydrogen facilities

Chemical Value Chain

France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).

September 25, 2022

NextChem announces €194-million grant for waste-to-hydrogen project in Rome

Chemical Value Chain

The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.

September 25, 2022

The problem with hydrogen

Chemical Value Chain

At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?