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Air Products awarded order in China for largest on-site air-separation unit to support Shaanxi coal chemical plant; collaboration with USTB

Air Products has signed a long-term contract with Shaanxi Future Energy Chemical Co., Ltd. and will build, own and operate the largest on-site air separation unit (ASU) order ever awarded to an industrial gas company. The facility, to be located in Yulin, Shaanxi Province, China, will include multiple ASU trains and produce 12,000 tons per day (TPD) of oxygen and significant tonnage volumes of nitrogen and compressed dry air for Shaanxi’s coal chemical plant. The Air Products ASU trains are scheduled to be operational in 2014.

A day earlier, Air Products announced it had signed a joint R&D agreement with the University of Science and Technology Beijing (USTB). The collaboration between Air Products and the Institute of Gas Separation Engineering of USTB will focus on the development of an advanced technology model to improve energy and capital efficiency in air separation processes.

In 2010, Air Products had announced, what at that time, was the largest single ASU on-site order ever committed to an industrial gas company. (Earlier post.) Scheduled to be operational in mid-2013 in Weinan, Shaanxi Province, China, that facility includes three ASU trains producing more than 8,200 TPD of oxygen, more than 3,100 TPD of nitrogen, and more than 375 TPD of compressed dry air, along with producing liquid products for the merchant market.

The industrial gases produced by Air Products’ ASUs and supplied to Shaanxi Future Energy Chemical Company at Yulin will be used to help produce one million tons per year of oil products. The ASU trains are to include design enhancements to minimize operating costs through energy efficiency. Technology advancements and other productivity improvements support Air Products’ overall sustainability goals of reducing energy consumption and emissions.

Shaanxi Future Energy Company was established in 2011. It is jointly-owned by YanKuang Coal Group (50%), Yanzhou Coal Co., Ltd. (25%) and Shaanxi Yanchang Petroleum Group (25%).

The new China contract award news follows Air Products’ 26 Sept. announcement of a project in Nanjing, China where the company will build, own and operate another ASU in the Nanjing Chemicals Industrial Park to supply industrial gases under long-term contract. Air Products will also operate an integrated liquefier to significantly increase the supply of liquid products for the growing merchant liquid industrial gas market in the region. The Nanjing operations are scheduled to be operational in 2013. It will be the third Air Products’ ASU operating at this location.

Air Products has been operating in China since 1987 and was one of the first multinational industrial gas corporations to invest in the country.



China's addiction to coal is a major weakness in their growth.

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