The company will employ UOP’s MTO technology to convert the methanol from coal and produce building blocks of plastic and explore the economical coal resources in the country to produce petrochemical products instead of using expensive petroleum.

Jiutai is planning to use the technology to produce about 600,000 metric tons of ethylene and propylene at its facility in Ordos City, Inner Mongolia Province, China every year.

UOP Process Technology & Equipment business unit senior vice president and general manager Pete Piotrowski said, "UOP’s MTO process will allow Jiutai to use methanol derived from cheaper and abundant coal to maximize yields of high-value petrochemicals, reduce operating costs and expand its presence in China’s growing ethylene and propylene markets."

Apart from the technology, UOP will also provide Jiutai with basic engineering, catalysts, adsorbents, specialty equipment, technical services and training for the project to be started in 2014.

The MTO technology was developed by UOP and INEOS help transform methanol from crude oil or non-crude oil sources like gasified coal or natural gas to produce ethylene and propylene, and other building block materials to make films, packaging, plastics and other petrochemicals.