Air Products (NYSE:APD) has signed a long-term contract with Weihe Clean Energy Company Limited, a subsidiary of Shaan’xi Weihe Coal Chemical Group Ltd, one of China’s largest coal-based fertilizer and methanol producers, to supply onsite gaseous oxygen and nitrogen for its phase three coal-to-chemicals project in Weinan Hi-Tech Zone (WHTZ) in Weinan city, Shaan’xi Province, Western China.
Air Products will build, own and operate a new air separation unit (ASU) on Weihe’s site near Xi’an, the capital city of Shaan’xi Province. Scheduled to come on-stream towards the end of 2010, the ASU plant will produce more than 2,000 tons of oxygen per day. In addition, Air Products will supply liquid bulk gases to the fast growing merchant market around Xi’an.
Weihe Clean Energy Company Limited is a subsidiary established by Shaan’xi Weihe Coal Chemical Group Ltd. It currently produces methanol and dimethyl ether(DME) and will produce methanol, acetic acid and acetic anhydride in its phase three expansion project. Weihe will use the high-pressure oxygen in the coal gasification process to produce syngas (synthesis gas), which can be further separated into carbon monoxide (CO) and hydrogen. Syngas, CO and hydrogen are important precursors to produce other basic chemicals such as ammonia, methanol and acetic acid, which are essential in the production of a variety of products including paints, adhesives, plastics, construction materials and hundreds of other products for the growing consumer markets in China.
