Total production capacity exceeds 4,000 tons! Air Products repurchases two large-scale air separation units from Jinmei Huayu

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Total production capacity exceeds 4,000 tons! Air Products Acquires Two Large Air Separation Units from Jinmei Huayu Author/Source: Gas Separation Date: 2019-07-26 Clicks: 10 Air Products, a global leader in industrial gases, announced today that it has recently completed the acquisition of two large air separation units owned by Shanxi Jinmei Huayu Coal Chemical Co., Ltd. (referred to as “Jinmei Huayu”) in Jincheng, Shanxi. Since the end of June 2019, Air Products has been supplying industrial gases such as oxygen and nitrogen to Jinmei Huayu’s important coal-to-clean-fuel project in Jincheng. Air Products stated that this asset repurchase and the provision of long-term gas supply services to Jinneng Huayu represent another important milestone in the company’s strategy for developing its gasification business, and reflect the company’s continued support for the development of China’s clean energy industry. In 2014, Air Products supplied two air separation units with a total daily gas production capacity of over 4,000 tons to Jincheng Coal Huayu’s first-phase energy project in Jincheng – a project aimed at producing 1 million tons of clean fuel from coal per year. In 2017, Air Products and Jinnan Coal Hua Yu discussed further cooperation in detail and reached a memorandum of intent, planning to repurchase these two air separation units in order to provide Jinnan Coal Hua Yu with a safe and reliable supply of industrial gases on a long-term basis. The repurchase of this asset was completed recently through the listing and trading process at the Shanxi Property Rights Exchange. Dr. Samir J. Serhan, Executive Vice President of Air Products, said, “We are very pleased to have successfully completed the repurchase of the air separation unit and to provide safe, reliable industrial gases and services for Jinmei Huayu’s important coal-to-clean-energy project.” We are sincerely grateful to our customers for their trust in Air Products’ world-class gas supply capabilities, and we look forward to further deepening our cooperation with Jinmei, a leading domestic energy group, in the field of coal gasification. ” Niu Hongkuan, general manager of Jinmei Huayu, said, “Common goals brought Jinmei Huayu and Air Products together.” Air Products’ operational experience and advantages in areas such as technology, talent, and safety management are crucial for ensuring the stable and high-output production of this important project. At the same time, the success of this project will also lay the foundation for broader and deeper cooperation between the two parties in the future. ” Leveraging its state-of-the-art large-scale air separation units, advanced gasification technologies and equipment, as well as reliable gas supply services, Air Products has been committed to investing in high-quality, strategic coal gasification projects in China, in order to support the transformation and upgrading of the domestic coal chemical industry toward higher-value products and sustainable development. Air Products’ acquisition of this air separation unit represents another significant coal gasification investment project following its Lu’an project in Changzhi, Shanxi. It is understood that Jinnan Coal Group Huayu Company and Air Products (Jincheng) Co., Ltd. held a signing ceremony in June this year for the transfer of assets related to air separation units as well as for cooperation on gas supply projects. Jinmei Group and Air Products Company will carry out extensive cooperation on air separation units, gasification units, and other facilities, in line with the construction progress of Huayu Company’s circular economy industrial park for the clean utilization of high-sulfur coal. It is reported that the Circular Economy Industrial Park for the Clean Utilization of High-Sulfur Coal by Jinmei Group is located in the Beiliuzhou Village Industrial Park in Jincheng, Shanxi. It is one of the \"one city, two parks\" projects designated by Shanxi Province. The park is planned to cover an area of about 12 square kilometers, with a total investment of around 80 billion yuan. It will be prepared for, built, and operated by Shanxi Jinmei Huayu Company, and its construction will take place in three phases. Phase 1 includes a project for the production of 1 million tons per year of methanol-based clean fuels (MTG), as well as a demonstration project for the integrated utilization of high-sulfur coal in power and heat generation. This phase involves the processing of 2.2 million tons of high-sulfur coal per year; by utilizing high-sulfur coal from the Jincheng mining area and chemical process waste gases, it is possible to produce 2.4 million tons of amino alcohols, 1 million tons of clean fuels, and 400 MW of electricity through IGCC technology. By-products such as sulfuric acid and LPG are also generated ； The second-phase project includes a 600,000 tons per year coal-to-olefins (DMTO) facility, a 400 MW IGCC power generation plant, as well as downstream facilities for the production of 300,000 tons per year of polypropylene and for the advanced processing of ethylene ； Phase III of the project includes a 600,000 tons per year coal-to-olefins (DMTO-‖) facility, a 400 MW IGCC power generation plant, as well as downstream facilities for the production of 300,000 tons per year of polypropylene and for the further processing of ethylene.