Air Products (NYSE: APD) today announced its Lu’an coal gasification project, located in Changzhi City, Shanxi Province, China, has come fully onstream to supply syngas and other industrial gases to Shanxi Lu’an Coal-based Clean Energy Co., Ltd.’s (Lu’an Clean Energy) syngas-to-liquids production. The successful startup of Air Products’ first-of-its-kind project further reinforces its leadership and operational excellence as the premier gasification company in the world.
The world-scale gasification project involves four large air separation units (ASUs), four gasifiers and two syngas clean-up systems which have operated at full capacity to support one of China’s landmark clean energy demonstration projects. The gasifiers, which represent the largest pulverized coal gasifiers adopting Shell’s proven gasification technologies, have been delivering outstanding performance in feedstock input, gases output, carbon conversion rate and operational efficiency.
Air Products signed an agreement with Lu’an Mining (Group) Co., Ltd. in 2013 to build, own and operate the four ASUs capable of supplying over 10,000 tons per day (TPD) of oxygen, over 6,000 TPD of nitrogen and over 700 TPD of instrument air to its subsidiary Lu’an Clean Energy in Changzhi. In September 2017, the company formed a joint venture with Lu’an Clean Energy, holding a 60 percent stake, to own and operate the ASUs, and gasification and syngas clean-up systems at the Changzhi site, extending Air Products’ industrial gas supply scope to include coal gasification and syngas supply.
“Air Products is proud to have reached another significant milestone in our history and to have established ourselves as the premier gasification company in the world. The Lu’an gasification project represents a significant step in executing our gasification strategy by extending our scope of supply to include syngas and operating the gasifiers. The successful execution demonstrates our core capabilities to support the world’s largest energy projects with safety, reliability and operational excellence,” said Seifi Ghasemi, chairman, president and chief executive officer of Air Products.
Lu’an Mining (Group) Co., Ltd. Chairman Li Jinping commented, “We are very pleased to have partnered with such a world-leading industrial gas company. The Air Products team has shown outstanding safety, technical and operational expertise, efficiency, and excellent service. The successful startup and smooth operation enable us to focus on our core syngas-to-liquids production, and thereby, our business development in the modern chemical industry.”
Air Products has been actively implementing against its gasification strategy over the last two years. In August, the company was awarded a long-term onsite contract to supply syngas to Jiutai New Material Co., Ltd.’s multi-billion dollar mono-ethylene glycol project in Hohhot, Inner Mongolia, China, which calls for the first gasification plant to be 100 percent owned by Air Products. Earlier that month, Air Products signed a Term Sheet with Saudi Aramco and ACWA Power to form an over $8 billion gasification/power joint venture located at Jazan Economic City in Saudi Arabia. In November 2017, it announced a $3.5 billion coal-to-syngas joint venture with Yankuang Group in Yulin of China’s Shaanxi Province. Earlier this year, the company acquired Shell’s coal gasification technology and patents.