Chemical Plant CCS Project, Yulin

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Dow and the Shenhua Group are investigating the establishment of a coal-to-chemicals plant in Yulin, China.

On its website, Dow states "preparing to form a joint venture to build and operate a world scale, integrated coal-to-chemicals complex in Yulin city, Shaanxi Province. The two companies are now in the process of completing and submitting reports covering various aspects of the project required for State approval."

Background

In May 2007 Dow and Shenua announced that they were signing a "cooperation agreement" and were planning a detailed feasibility study for a "world-scale coal-to-chemicals complex in Shaanxi Province, People’s Republic of China." The media release stated that "the project will use 'clean coal' technologies that convert coal to methanol to produce ethylene and propylene, the building blocks to make various plastics and chemical products. The complex will include a chlor-alkali unit, enabling the production of products such as caustic soda, vinyl chloride monomer and chlorinated organics. Other derivative products being planned for the complex include glycols, amines, solvents, surfactants, acrylic acid and derivatives and propylene derivatives."

The company stated that "the feasibility study will encompass environmental impact assessment, water supply, front-end loading engineering design, market and product mix, logistics and supply chain, and economic evaluation. The feasibility study is expected to take approximately two years. The two companies then will compile a project application report based on the completed positive feasibility study and submit that to the Chinese government for approval."

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