Air Products has signed an agreement for a $3.5bn coal-to-syngas production facility to be built in China.
The agreement was signed in the Great Hall of the People as part of the Trade Mission to China by the US Department of Commerce in the presence of Donald J. Trump, President of the United States of America, Xi Jinping, President of the People’s Republic of China, Seifi Ghasemi, Air Products’ Chairman, President and CEO, and Li Xiyong, Chairman of Yankuang Group Co., Ltd. The facility will be built in Yulin City, Shaanxi Province, China.
Under the agreement, Air Products and Shaanxi Future Energy Group Co., Ltd. (SFEC), a subsidiary of Yankuang Group, intend to form an Air Products majority-controlled joint venture company which would build, own and operate an air separation, gasification and syngas clean-up system to supply the SFEC site. The air separation units are expected to produce approximately 40,000 tonnes-per-day (TPD) of oxygen (O2) to support the production of about 2.5m nm3/hour of syngas. SFEC would supply coal, steam and power and receive syngas under a long-term, onsite contract.
The Tier One company currently supplies SFEC’s phase one project in Yulin with 12,000 TPD of O2. The addition of phase two would make this complex one of the largest coal to fuel and chemicals facilities in China, with SFEC phase two producing four million tonnes-per-year of liquid fuels and downstream chemicals.
The parties are committed to finalising the agreements as soon as possible, with the overall project expected onstream in 2021.
Speaking about the agreement, Ghasemi (above) said, “Air Products is delighted to announce this significant expansion of our already strong relationship with one of China’s largest energy companies. This new agreement confirms Yankuang’s trust in us, built on the supply reliability we have delivered for their phase one project. It is another excellent example of Air Products’ strategy to grow profitably by deploying capital into world-scale industrial gas projects.”
Xiyong echoed, “We look forward to further extending our excellent partnership with Air Products, leveraging their technology, reliability and expertise to enable us to produce even more high-quality fuel and chemical products that drive growth and support sustainable development.”