The coal-to-syngas processing facility is planned to be built with an investment of £202.8m in Xuwei National Petrochemical Park in China

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Image: The new facility will supply syngas to support Debang Group’s 350,000 tons-per-year chemicals facilities. Photo: courtesy of LEEROY Agency from Pixabay.

Air Products has form a joint venture (JV) with Debang Xinghua Technology to build, own and operate a new $250m (£202.8m) coal-to-syngas processing facility in Jiangsu Province, China.

Planned to be built in Xuwei National Petrochemical Park, Lianyungang City, Jiangsu Province, the new coal-to-syngas processing facility is scheduled for commissioning in 2023.

Air Products to own majority stake in new JV

Air Products will own an 80% stake in the JV while Debang Group, a subsidiary of Jiangsu Debang Chemical Industrial Group, owns the remaining 20% interest.

Air Products chairman, president, and CEO Seifi Ghasemi said: “This new project furthers our gasification growth strategy in the Xuwei National Petroleum Park—one of seven national integrated oil refining and petrochemical parks in China—while also creating new merchant supply capability for us to serve a high density manufacturing base in the region.

“We are honored to form this JV with Debang Group to own and operate the gasification facilities and supply the syngas that will enable Debang Group to produce needed ammonia and other products for their customers.”

The JV will own and operate the air separation unit, gasification and purification assets under a 20-year contract. The syngas will be supplied to support Debang Group’s 350,000 tonne-per-year chemicals facilities, as part of the deal.

Debang Group chairman Zhao Xiang Hai said: “This project is an important action for Debang Group to follow ‘China’s East, Central, and West Regional Cooperation Demonstration Zone’ strategy, accelerate the pace of scientific and technological innovation, eliminate outdated production capacity, and build a competitive and innovative green chemical enterprise group.

“This project received strong support from the municipal government and the Xuwei Park’s management committee, and we believe this is only the beginning. We look forward to our strong collaboration with Air Products to provide quality, value, and high efficiency through this strategic project.”

Additionally, Air Products will serve as the exclusive purchaser of merchant liquid products from the JV facility.

Last month, Air Products closed the acquisition of gasification business from General Electric (GE)’s business arm GE Power.

The acquisition of its gasification business includes GE’s share in a 50/50 joint venture with China Shenhua Coal to Liquid and Chemical Company, a subsidiary of China Energy Group.