Shandong will use the advanced MTO process to convert methanol from gasified coal into ethylene and propylene, which are the building blocks of many petrochemical products such as films, plastics and packaging.
UOP’s advanced MTO process combines Honeywell’s UOP/Hydro MTO process with Total Petrochemicals/UOP Olefin Cracking process.
Honeywell UOP Process Technology & Equipment business unit senior vice president and general manager Pete Piotrowski said the technology will help the company to address the increasing demand for ethylene and propylene in the country.
"UOP’s advanced MTO solution allows petrochemical producers in China such as Shandong to tap abundant and cheap coal resources, produce high yields of valuable petrochemicals, and reduce operating costs," Piotrowski said.
As per the agreement between the two companies, UOP will not only provide its licensed MTO technology, but will also extend its basic engineering, catalysts, adsorbents, specialty equipment, technical services and training for the project.
The project is slated to begin in 2014.
UOP and INEOS together developed the MTO process to transform the extracted methanol from crude and non-crude oil sources such as coal and natural gas to ethylene and propylene.