China’s Hongye plans big coal-based glycol facility: US contractor

15 October 2013 17:52  [Source: ICIS news]

HOUSTON (ICIS)--China's Hongye International Investment Group plans to build a 600,000 tonne/year coal-based glycol plant in the country's Inner Mongolia region, US technology firm Synthesis Energy Systems (SES) said on Tuesday.

Houston-based SES, which won a contract to supply its coal gasification technology for Hongye’s project in Wuhai Citysaid that the facility would convert coal feedstock into syngas, which would then be converted to glycol.

The yuan (CNY) 9.5bn ($1.6bn, €1.2bn) project could be built within two years following final approval. Hongye already has pre-approvals from Chinese authorities, and “further approvals required to advance the project are currently being sought,” SES said.

"Hongye has a strong presence in the coal industry in Inner Mongolia and this project has the potential to provide a great example of a future solution for using low cost, low quality domestic resources in China in a clean and responsible manner," said SES CEO Robert Rigdon.

“Because of our technology's capability to cleanly process these lower quality coals in Inner Mongolia, we have become the key for our customers like Hongye to achieve lower operating costs, which enable positive operating margins from their projects," Rigdon added.

($1 = €0.74, $1 = CNY6.11)

By: Stefan Baumgarten
+1 713 525 2653

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