Honeywell UOP has been selected by Luxi Chemical Group to supply its advanced methanol-to-olefins (MTO) process for a facility in Liaocheng, Shandong province, China. A start-up date for the plant was not given.

The technology, which converts methanol from coal and natural gas, will be used to produce 293,000 t/y ethylene and propylene. UOP’s proprietary catalysts make it possible to adjust the ratio of ethylene and propylene produced so that operators can align output more closely with market demand.

Honeywell Process Solutions (HPS) will supply its automation and control systems which contain proprietary UOP operating models to improve operating efficiency. Aldous Wong, HPS’ vice president, Greater China, said that combining UOP’s technology with HPS’ systems will help Luxi maximize its return on investment for the entire project lifecycle which will be a critical factor as competition continues to grow.

Mike Millard, vice president and general manager of UOP’s Process Technology and Equipment business, said China is expected to invest more than $100 billion in coal-to-chemicals technology in the next five years. He added that, to date, eight companies in China have chosen UOP’s advanced MTO technology, representing a total capacity of nearly 3.2 million t/y.

Honeywell UOP puts global demand growth for ethylene and propylene at 4-5% per year.