Dow's oxygenated solvents business and Davy Process Technology (DPT) have licensed the LP Oxo Selector 10 technology to China-based Wison Energy.
LP Oxo Selector technology is a low-pressure hydroformylation process which is used with propylene and synthesis gas to produce normal aldehydes and isobutyraldehydes, which are then converted into 2-ethylhexanol, butanol and isobutanol.
With the LP Oxo licence, Wison Energy will build a new LP Oxo alcohol plant with a capacity of 125kta of 2-ethylhexanol and 125kta of butanol in Nanjing, China.
Wison Energy's Nanjing plant, which currently operates a 600kta carbon monoxide unit, uses coal as its feedstock and employs clean production technologies to produce carbon monoxide, methanol, hydrogen, syngas, sulphur and butyl-octyl alcohol.
In addition to the licence agreement, Dow has agreed to purchase a portion of product over a certain period of time from Wison Energy's new alcohol plant.
Liu Hongjun, Wison Energy general manager, said: "By introduction of the cutting edge LP Oxo Technology from DPT and Dow, as well as signing a supply agreement with Dow, it helps us to broaden our product portfolio and enhance our strategic position to become a leading basic chemical raw material supplier in China by adopting advanced and clean technology."
Dow LP Oxo technology licensing business director Alan Robinson said simultaneously concluding both the licence and product purchase agreements will create additional benefits.
"Wison Energy benefits from baseloading its new plant, and Dow benefits by gaining access to future product from a state-of-the-art facility," Robinson said.
Image: Dow Chemical's corporate headquarters in Midland, Michigan, US.