Air Products to develop $3.5bn coal-to-syngas facility in China
Air Products has signed an agreement with Yankuang Group to build a $3.5bn coal-to-syngas production facility at Yulin City, Shaanxi Province, China.
The agreement was signed under the presence of the US President Donald Trump and Chinese President Xi Jinping during the former’s visit to China.
Air Products chairman, president and CEO Seifi Ghasemi 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 1 project.”
Under the agreement, Air Products and Yankuang Group subsidiary Shaanxi Future Energy Group (SFEC) intend to form a new joint venture (JV) company.
The JV will have the responsibility to build, own and operate an air separation, gasification and syngas clean-up system to supply the SFEC site.
The air separation units are capable of producing nearly 40,000tpd of oxygen and will support the production of around 2.5 million normal cubic metres of syngas an hour.
SFEC would provide coal, steam and power as well as procure syngas under a long-term, onsite contract.
Yankuang Group chairman Li Xiyong said: “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.”
The final agreements of the deal are scheduled to be signed soon, while the project is expected to start operating in 2021.
Currently, Air Products supplies 12,000tpd of oxygen to SFEC’s Phase 1 project in Yulin.
After the addition, SFEC Phase 2 will produce nearly four million tonnes of liquid fuels and downstream chemicals annually.
Image: Air Products’ chairman, president and CEO Seifi Ghasemi (third from left), Yankuang Group chairman Li Xiyong (fourth from left) with leaders from the two companies. Photo: courtesy of Steve Meier/ Air Products.