The deal, which came about on the sidelines of U.S. President Donald Trump’s visit to Beijing, has yet to be finalized.
On the sidelines of U.S. President Donald Trump’s visit to Beijing, Air Products and Chemicals Inc, a U.S. industrial gas supplier, and the Yankuang Group, a top Chinese coal miner, have said they plan on building a $3.5 billion coal-to-synthesis gas (syngas) plant in China.
China is the world’s biggest consumer of coal.
Although the deal is yet to be finalized, a statement by both companies say they would look into it asap.
Under the terms of the agreement, Air Products and Shaanxi Future Energy Group Co (SFEC), a subsidiary of Yankuang, will form a joint venture, in which Air Products will have a majority stake.
Yankuang will build, own and operate an air separation, gasification and syngas clean-up system in the city of Yulin to supply SFEC, said a statement from both firms.
The air separation units are expected to produce around 40,000 tonnes per day (TPD) of oxygen to support the production of about 2.5 million normal cubic meters an hour of syngas.
Under the terms, SFEC is expected to supply coal, steam and power and receive syngas.
Currently Air Products supplies 12,000 TPD of oxygen to Yulin, as part of Phase 1.
After Phase 2, the project will gain even more prowess and become one of the world’s largest coal-to-fuel and chemicals facilities in China, with the facility producing 4 million tonnes per year of liquid fuels and downstream chemicals, said a statement from Yankuang.
The project’s estimated date of completion is 2021.