DES PLAINES, Ill., May 31, 2017 /PRNewswire/ -- Honeywell (NYSE: HON) announced today that Ningbo Fortune Petrochemical Co. Ltd. and Zhangjiagang Yangzi River Petrochemical Co. Ltd. (YRPC), both subsidiaries of Oriental Energy Co. Ltd., each are producing 600,000 metric tons annually (MTA) of on-purpose propylene from propane with Honeywell UOP's C3 Oleflex™ process technology.
YRPC, located in Zhangjiagang in China's Jiangsu Province, and Ningbo Fortune, in Ningbo City in Zhejiang Province, are the fourth and fifth Chinese companies to commercialize Honeywell UOP's C3 Oleflex process to make propylene for plastics, packaging and synthetic fibers. Global production capacity of propylene from Oleflex technology now stands at approximately 6.8 million MTA.
"The demand for domestically produced on-purpose propylene continues to be very strong in China due to the increasing demand for polypropylene and other downstream chemical and plastic products," said John Gugel, vice president and general manager of Honeywell UOP's Process Technology and Equipment business. "Through its integrated supply chain position, Oriental Energy derives exceptional value from Oleflex technology."
Until recently, 70 percent of the world's propylene was produced as a byproduct of making ethylene from petroleum. However, the increased use of ethane as a source of ethylene produces almost no propylene. The resulting propylene supply gap has necessitated the production of on-purpose propylene from propane dehydrogenation technologies such as the Oleflex process.
Demand for propylene in China, which consumes more than 15 percent of the world's propylene, is growing more than 4 percent per year, according to the U.S. Energy Information Administration.
Honeywell UOP's C3 Oleflex technology uses catalytic dehydrogenation to convert propane to propylene and is proven to have the lowest cash cost of production and the highest return on investment among competing technologies. Its low energy consumption, low emissions, and fully recyclable, platinum-alumina-based catalyst system minimizes its impact on the environment. The independent reaction and regeneration systems allow continuous use of catalysts for steady-state operations, which improves operating flexibility, on-stream factor and reliability.
In addition to licensing technology from Honeywell UOP, YRPC and Ningbo Fortune are using catalysts and adsorbents for their Oleflex units that are made at Honeywell's manufacturing site located in Zhangjiagang City. Honeywell UOP also provided the engineering design, equipment, staff training and technical service for both projects.
Honeywell UOP also licenses C4 Oleflex technology, which converts isobutane to isobutylene, the primary ingredient for making high-octane fuel and synthetic rubber. Honeywell UOP's Oleflex technology has been selected for 40 out of 47 projects globally since 2011, including propane (C3), isobutane (iC4) and mixed C3/ iC4 service.
With headquarters in Nanjing City, Oriental Energy Company Ltd. was founded in 1996 to focus on the domestic and international trade of olefins, chemical storage, and petrochemicals. The company develops clean energy and new materials in global olefin markets for the development of the Chinese economy, and it is committed to becoming the largest comprehensive olefins company in eastern China. It was listed on the Shenzhen stock market in March 2008.
Honeywell UOP (www.uop.com) is a leading international supplier and licensor of process technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries. Honeywell UOP is part of Honeywell's Performance Materials and Technologies strategic business group, which also includes Honeywell Process Solutions (www.honeywellprocess.com), a pioneer in automation control, instrumentation and services for the oil and gas, refining, petrochemical, chemical and other industries.
Honeywell (www.honeywell.com) is a Fortune 100 software-industrial company that delivers industry specific solutions that include aerospace and automotive products and services; control technologies for buildings, homes, and industry; and performance materials globally. Our technologies help everything from aircraft, cars, homes and buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
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