LUXI Chemical Group Co. Ltd., Liaocheng City, Shandong Province, China, a subsidiary of state-owned LUXI Group Co. Ltd., has let a contract to Honeywell International Inc. to provide process technology and automation controls to its Liaocheng manufacturing site that will convert methanol derived from gasified coal into basic olefins used to produce plastics.
Honeywell subsidiary UOP LLC will delivery LUXI Chemical its proprietary advanced methanol-to-olefins (MTO) technology to covert coal-derived methanol into 293,000 tonnes/year of ethylene and propylene, Honeywell said.
As part of the contract, Honeywell Process Solutions (HPS) will implement a suite of automation and control systems, including the Experion Process Knowledge System (PKS) and Safety Manager, which will be used in tandem with proprietary UOP operating models, to manage plant operations.
Neither a value of the contract nor a timetable for production startup were disclosed.
LUXI Chemical marks the eighth company in China to select UOP’s Advanced MTO technology to meet increased demand for ethylene and propylene, which continues to grow globally at a rate of 4-5%/year, the service company said.
Lacking the abundance of domestic crude supplies traditionally used to produce olefins, China is due to invest more than $100 billion in coal-to-chemicals technology within the next 5 years, Honeywell said.
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