Air Products has won a contract to supply syngas to Jiutai New Material for its mono-ethylene glycol project in Hohhot, China.
Under the contract, Air Products will build, own and operate air separation, gasification, and gas clean up processing facility, with an investment of $650m.
Featuring recently acquired Shell gasification technology, the coal-to-syngas plant is planned to be commissioned in the fourth quarter of Air Products’ fiscal year 2021.
Air Products chairman, president and CEo Seifi Ghasemi said: “This facility will be the first plant 100 percent owned by Air Products and is a prime example of our gasification strategy focused on building, owning and operating the facilities and supplying syngas under long-term onsite contracts.”
Air Products said it will receive a fixed monthly fee under the long-term contract while Jiutai will supply the coal feedstock and take all output from the plant.
Jiutai CEO Cui Lianguo said: “We are looking forward to working with Air Products very closely to build and operate a first-class coal-to-chemicals plant.”
Expected to produce over 500,000Nm3/hr of syngas, the facility will feature five gasifiers, two approximately 100,000nm3/hr air separation units (ASU), with syngas purification and processing, as well as associated infrastructure and utilities.
Air Products global gasification and Asia large onsites business development vice-president Phil Sproger said that the coal gasification market is estimated to grow significantly over the next 10 years in China.
“This project will allow Air Products to further demonstrate our gasification capabilities to expand our presence in China, and position the company for future projects.
“Owning and operating coal gasifiers and syngas purification units is a logical extension of our global hydrogen and syngas business and builds on our decades of operating experience we have developed.”
Earlier this year, Air Products has closed a coal-to-syngas project joint venture with Lu’An Clean Energy Company in China’s Shanxi Province.