Air Products on Wednesday announced the signing of a long-term agreement with Shanxi Lu'An Mining Co. for Air Products to build, own and operate four air separation units producing oxygen, nitrogen, compressed instrument air and steam.
The units will supply Lu'An's multiple process trains at its coal gasification facility to be built in Changzhi City, Shanxi Province, China.
It is the second-largest ASU onsite order ever awarded to the company for a single project, according to Air Products officials.
Air Products' four ASUs will combine to supply over 10,000 tpd of oxygen, more than 6,000 tpd of nitrogen, and over 700 tpd of instrument air.
The first of the four ASUs is targeted for onstream in July 2015. The remaining three are to be operational at one month intervals with the final ASU scheduled for commercial operation in October 2015.
"It's been our strategy to pursue large ASU projects in the high growth China coal gasification market," said Steve Jones, Air Products' China president.
"This is another key win and important project for Air Products as we continue to grow our relationship with the major coal groups in China," he added.
China has significant coal reserves to produce syngas from the coal and then convert the syngas into fuel, chemicals, and fertilizers, according to company officials.
At Lu'An's Changzhi City facility, the coal-to-liquids project will produce mainly diesel fuel and derivatives. Air Products' ASU trains will include design enhancements to minimize operating costs through energy efficiency.
Technology advancements and other productivity improvements support Air Products' overall sustainability goals of reducing energy consumption and emissions.
"At Lu'An, we strive to cooperate and grow with industry leaders like Air Products. We look forward to further cooperation between our companies," said Mr. Jinping Li, chairman of Lu'An.
The Lu'An win is Air Products' eighth major investment supporting the gasification segment and the second supporting the coal to liquid sub-segment in China.
Once all the projects under construction are completed, Air Products will have 18 ASUs supplying large tonnage quantities of industrial gases to Chinese gasification facilities.