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SES and YIMA Sign Agreement for Coal-to-DME Plant in China

3 May 2007

Synthesis Energy Systems, Inc. (SES), a coal gasification company, and Yima Coal Industry Group Co., Ltd. (YIMA), a large Chinese integrated coal company, have signed a preliminary agreement to establish a joint venture company to build and operate a new integrated coal gasification to methanol to Dimethyl Ether (DME) plant. The new plant, to be located in Henan Province, China, will help supply the region’s growing petrochemical and transportation fuel needs.

This marks SES’s third project in China. SES is also involved in a coal gasification project with Shandong Hai Hua Coal & Chemical Company Ltd., and in another coal-to-DME project with Golden Concord Holdings Ltd.

The SES-YIMA plant will utilize SES’s U-GAS fluidized bed reactor gasification technology—licensed from the Gas Technology Institute (GTI)—to convert low-quality, high-ash coals into syngas. The syngas produced will then be used as a feedstock for the production of methanol, a basic building block used in manufacturing for a wide variety of chemical products including plastics, paints, construction materials, as a hydrogen carrier for fuel cell applications, or as an alternative fuel.

In this application, the coal-derived methanol will also be used to produce DME, an alternative to liquefied petroleum gas, liquid natural gas, diesel and gasoline. The parties are also considering opportunities for power generation applications. Formation of the JVC is subject to the negotiation and execution of a definitive agreement and approvals from both companies.

When completed, the Plant is expected to have a daily capacity of 10 million standard cubic meters of syngas and an annual capacity of 1 million tons of methanol.

With nearly 100 million people, Henan is the most populous province in China and one of the region's leading coal and aluminum production centers.

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May 3, 2007 in China, Coal, Coal-to-Liquids (CTL), DME | Permalink | Comments (3) | TrackBack (0)

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Comments

And the CO2 sequestration package?

Mike,

"With nearly 100 million people, Henan is the most populous province in China"

Please note that this is not correct.

Currently, the market trend today is such that many Chinese coal chemical companies are moving towards optimising low cost and abundant coal feedstock for expansion into DME production.

If you would like to know more on COAL to Syngas to DME developments, join us at upcoming North Asia DME / Methanol conference in Beijing, 27-28 June 2007, St Regis Hotel. The conference covers key areas which include:


DME productivity can be much higher especially if
country energy policies makes an effort comparable to
that invested in increasing supply.
By:
National Development Reform Commission NDRC
Ministry of Energy for Mongolia

Production of DME/ Methanol through biomass
gasification could potentially be commercialized
By:
Shandong University completed Pilot plant in Jinan and
will be sharing their experience.

Advances in conversion technologies are readily
available and offer exciting potential of DME as a
chemical feedstock
By: Kogas, Lurgi and Haldor Topsoe

Available project finance supports the investments
that DME/ Methanol can play a large energy supply role
By: International Finance Corporation

For more information: www.iceorganiser.com

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