Honeywell's UOP Wins Third License For Breakthrough Methanol-To-Olefins Technology To Convert Coal Into High-Value Petrochemicals

DES PLAINES, Ill., Nov. 8, 2012 /PRNewswire/ -- UOP LLC, a Honeywell (NYSE: HON) company, announced today the third technology license for its breakthrough methanol-to-olefins (MTO) technology, which converts methanol from coal into key plastics building blocks.

China's Shandong Yangmei Hengtong Chemicals Co. Ltd. will use Honeywell UOP's advanced MTO process, which combines Honeywell's UOP/Hydro MTO process and the Total Petrochemicals/UOP Olefin Cracking process to convert methanol from gasified coal into ethylene and propylene, building block materials used in the production of films, packaging, plastics and other petrochemicals.

China is the world's largest producer of coal, accounting for nearly half of global production, according to the U.S. Energy Information Administration, making it an attractive alternative feedstock for in-country production of plastics building blocks.

"UOP's advanced MTO solution allows petrochemical producers in China such as Shandong to tap abundant and cheap coal resources, produce high yields of valuable petrochemicals, and reduce operating costs," said Pete Piotrowski, senior vice president and general manager of Honeywell's UOP Process Technology & Equipment business unit. "This technology will help Shandong meet growing demand in China for ethylene and propylene."

Shandong will use UOP's advanced MTO solution to produce more than 295,000 metric tons ethylene and propylene annually at its facility in Tancheng, Linyi City, China. In addition to technology licensing, Honeywell's UOP will provide basic engineering, catalysts, adsorbents, specialty equipment, technical services and training for the project, which is expected to start up in 2014.

The MTO process, jointly developed by Honeywell's UOP and INEOS (formerly Hydro), converts methanol derived from crude oil and non-crude oil sources such as coal or natural gas to ethylene and propylene. The process, based on proprietary UOP catalysts, is proven to provide high yields with minimal byproducts. MTO also offers flexibility in the quantity of propylene and ethylene produced, so producers can adjust plant designs to most effectively address market demands.

Shandong will also use the Olefin Cracking Process, which boosts the total yield of useable ethylene and propylene by further converting olefins produced during the MTO process.

Previously, Honeywell's UOP announced two other MTO projects. China's Wison (Nanjing) Clean Energy Company Ltd. also licensed Honeywell UOP's advanced MTO solution. China's Jiutai Energy (Zhungeer) Co. licensed Honeywell's UOP/Hydro MTO process. The facilities are expected to produce 295,000 and 600,000 metric tons of ethylene and propylene per year, respectively.

Shandong Yangmei Hengtong Chemicals Co. Ltd. is a global chemical enterprise that produces urea, methanol, caustic soda, hydrogen peroxide and polyvinyl chloride. The company is based in Linyi, China and operates as a subsidiary of Shanxi Yangquan Coal Industry (Group) Co., Ltd.

UOP LLC, headquartered in Des Plaines, Illinois, USA, is a leading international supplier and licensor of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries. UOP is a wholly-owned subsidiary of Honeywell International, Inc. and is part of Honeywell's Performance Materials and Technologies strategic business group. For more information, go to www.uop.com.

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.

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SOURCE Honeywell