Air Products and the Yankuang Group Co., Ltd., signed an agreement for a $3.5-billion coal-to-syngas production facility to be built in Yulin City, Shaanxi Province, China.
Under the agreement, Air Products and Shaanxi Future Energy Group Co., Ltd. (SFEC), a subsidiary of Yankuang Group, intend to form an Air Products majority-controlled joint venture company which would build, own and operate an air separation, gasification and syngas clean-up system to supply the SFEC site. The air separation units are expected to produce approximately 40,000 tons-per-day (TPD) of oxygen to support the production of about 2.5 million nm3/hour of syngas. SFEC would supply coal, steam and power and receive syngas under a long-term, onsite contract.
Air Products currently supplies SFEC’s Phase 1 project in Yulin with 12,000 TPD of oxygen. The addition of Phase 2 would make this complex one of the largest coal-to-fuel and -chemicals facilities in China, with SFEC Phase 2 producing four million tons-per-year of liquid fuels and downstream chemicals.
The parties are committed to finalizing the agreements as soon as possible, with the overall project expected onstream in 2021.
Yankuang Group Co., Ltd. is an extra-large State-Owned-Enterprise (SOE) mainly engaged in coal mining and sales, coal chemical industry, power generation and aluminum production and machinery manufacturing. The mining business commenced development in 1966, and Yanzhou Coal Mining Bureau was established in 1976. It was restructured into a sole State-owned company in 1996 and further developed into Yankuang Group Co., Ltd. in 1999. Now Yankuang Group is the largest coal exporter and producer integrated with coal further-processing in Eastern China, and one of the three chemical industry bases in Shandong Province.