UOP LLC, a Honeywell (NYSE: HON) company, announced Thursday that it has been selected to provide key technology to produce propylene in China.
Zhangjiagang Yangzi River Petrochemical Co. Ltd will use Honeywell's UOP C3 Oleflex process technology to convert propane to propylene, which is used in the production of materials such as films and packaging.
The project is the ninth propylene project Honeywell's UOP has announced since the beginning of 2011, helping meet the growing demand globally.
"UOP's combined Oleflex projects will help increase propylene production by nearly 5 million metric tons globally in the next three years," said Pete Piotrowski, senior vice president and general manager for Process Technology and Equipment at Honeywell's UOP. "This technology has been used extensively in China due to the region's accelerated propylene demand, and we look forward to working with Zhangjiagang Yangzi River to continue to produce this vital petrochemical."
The new unit, expected to start up in 2014, will produce 600,000 metric tons of propylene annually at its facility in Zhangjiagang City, Jiangsu Province, China. Honeywell's UOP will provide the engineering design, technology licensing, catalysts, adsorbents, equipment, staff training and technical service for the project.
The C3 Oleflex process uses catalytic dehydrogenation to convert propane to propylene. Compared with competing PDH processes, Oleflex technology provides the lowest cash cost of production and the highest return on investment, enabled by low operating and capital costs, high propylene yield and reliability, and maximum operating flexibility.
Since the technology was commercialized in 1990, Honeywell's UOP has commissioned nine C3 Oleflex units for on-purpose propylene production, with the 10th unit scheduled to start-up this year in Russia. Since the beginning of 2011, Honeywell's UOP announced eight similar projects in China, Abu Dhabi and North America.
Zhangjiagang Yangzi River Petrochemical Co. Ltd. is a joint venture of Oriental Energy Co., Huachang Chemical Co. and Feixiang Chemical Co., and is headquartered in Zhangjiagang City, Jiangsu Province, China.