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Yunnan Jiehua Clean Energy signs a framework cooperation agreement with Air Products and Chemicals Inc. Author/Source: Coal Chemical Industry 114 Forum Date: November 23, 2020 Clicks: 7 On November 6, 2020, at the \"Presentation on Yunnan’s Efforts to Build a Modern Industrial System and Signing Ceremony for Global Sourcing Related Projects\" during the Third China International Import Expo in Shanghai, Jiehua Chemical Branch of Yunnan Jiehua Clean Energy Development Co., Ltd. and Air Products and Chemicals Inc. (China) Investment Co., Ltd. signed a framework cooperation agreement regarding the relocation, transformation, and development of large-scale coal chemical projects by Jiehua. The relocation, transformation and upgrading project of Jiehua Branch is planned to be built in the Chemical Industry Park in Kaiyuan City, Yunnan Province. To optimize and upgrade the 500,000 tons per year ammonia synthesis plant and its downstream products, efforts are being made to transform and develop a 1.8 million tons per year methanol plant, as well as facilities for producing carbon-based new materials from methanol. The main products and downstream products include 1.8 million tons per year of methanol and related carbon-based new materials, as well as 500,000 tons per year of liquid ammonia and downstream products such as nitric acid, *ao acid an, nitro fertilizers, urea, concentrated nitric acid, and calcium nitrate. The project is expected to require an investment of 20 billion yuan, with an annual coal consumption of around 7.5 million tons; the facility will cover an area of 250 hectares. The signing of this framework agreement on cooperation in the investment and operation of certain facilities between Jiehua Chemical Company and Air Products (China) Investment Co., Ltd. has played a positive role in facilitating the relocation, transformation, and development of large-scale coal chemical projects by Jiehua Chemical Company. Project Overview: The construction of a large-scale coal chemical project by the Petrochemical Branch through relocation and transformation is one of the key enterprises to be developed and key industrial investment projects under Yunnan Province’s 2020 industrial development \"Double Hundred\" initiative. Jiehua Branch is a subsidiary of Yunnan Jiehua Clean Energy Development Co., Ltd., which in turn is part of Yunnan Coal Chemical Industry Group Co., Ltd. (a state-owned enterprise). In December 2018, the relocation, transformation, and upgrading of the Jiehua Branch to build a large-scale coal chemical project were addressed; a development plan was prepared by the China Petroleum and Chemical Industry Planning Institute, and it was approved by the provincial, prefectural, and municipal authorities as well as relevant departments. Jiehua Chemical Company was formerly known as the “PLA Fertilizer Factory in Kunming”. Established in 1958, it was the first nitrogen fertilizer enterprise in Yunnan Province. Raw material gas is produced using the Lurgi pressurized gasification technology. The products include synthetic ammonia, methanol, urea, *ao acid an, dimethyl ether, ammonium nitrophosphate, etc. On August 26, 2020, it was planned to construct this project in the chemical industry park of Kaiyuan City, Yunnan Province, with the aim of upgrading a synthetic ammonia production facility with an annual capacity of 500,000 tons as well as the facilities for producing downstream products ； Transform and upgrade to build a 1.8 million tons/year methanol plant ； Methanol downstream carbon-based new materials plant. The main products and downstream products include: 1.8 million tons per year of methanol and downstream carbon-based new materials, 500,000 tons per year of liquid ammonia and downstream nitric acid, *ao acid an, nitrofertilizers, urea, concentrated nitric acid, and calcium nitrate. The project is expected to require an investment of 20 billion yuan, with an annual coal consumption of around 7.5 million tons; the facility will cover an area of 250 hectares. Achieving the optimization of coal utilization methods, their rational expansion, and effective value addition will help fill the gaps in modern coal chemical industry and coal-based new materials in Yunnan Province. This will turn the region into an important base for the modern coal chemical industry in the southwest, making a positive contribution to the local ecological environment as well as socioeconomic development. Air Products (China) Investment Co., Ltd. is Air Products’ wholly-owned subsidiary and investment holding company in China. Air Products is a world-leading industrial gases company with nearly 80 years of experience in operation, and it is also a leader in the supply of liquefied natural gas process technologies and equipment worldwide. The company develops, designs, builds, owns, and operates some of the world’s largest industrial natural gas projects, including gasification projects that convert abundant natural resources into syngas in a sustainable manner to produce high-value electricity, fuels, and chemicals. In fiscal year 2019, Air Products generated sales of $8.9 billion across 50** locations; its current market value is approximately $66 billion (as of the end of September 2020), and it employs over 17,000 people worldwide.