The new unit, which is the first of three in China, uses Honeywell UOP's C3/C4 Oleflex™ process technology to produce propylene, a building block for making plastics, packaging and synthetic fiber, and isobutylene, a component used for high-octane gasoline and synthetic rubber. The unit, which is only the second of its kind in the world, successfully started up in May and all production targets have been accepted. Two other Chinese producers have also licensed the technology for start up in 2017.
"As the demand for transportation fuels and petrochemicals continues to grow in China, petrochemical companies there see a real benefit from integrating processes," said Mike Millard, vice president and general manager of Honeywell UOP's Process Technology and Equipment business. "The start up of the first combined C3/C4 Oleflex unit in China is a milestone in the region's petrochemical production, and it will help Chambroad manage market conditions more efficiently."
China consumes more than 15 percent of the world's propylene and its demand is growing more than 4 percent per year, according to the U.S. Energy Information Administration. At the same time, gasoline demand is expected to grow in China as a result of a growing middle class and higher car sales.
Honeywell UOP's C3/C4 Oleflex technology uses catalytic dehydrogenation to convert propane to propylene and isobutane to isobutylene. Using mixed dehydrogenation, the processes are combined to produce both materials in a single unit. The technology is proven to have the lowest cash cost of production and the highest return on investment compared with competing technologies.
Located in Binzhou City, Shandong Province, the new unit will produce 116,000 metric tonnes per year of propylene and 104,000 metric tonnes per year of isobutylene.
Honeywell UOP's C3/C4 Oleflex technology has also been licensed by two other Chinese producers. Dongming Petrochemical Group will produce 265,000 metric tonnes per year of propylene and isobutylene, and Dongying Liyuan will produce 220,000 metric tonnes per year of propylene and isobutylene using the process. Both facilities also will use Honeywell UOP's Butamer™ process, which converts normal butane into isobutane to increase feedstock flexibility for the Oleflex process.
Shandong Chambroad selected Oleflex technology over other processes due to the superior economics, proven reliability and successful track record of other Honeywell UOP dehydrogenation units in operation. Honeywell UOP has licensed the only two C3/C4 dehydrogenation units operating in the world today.
Shangdong Chambroad Holding Co., Ltd. is a private enterprise that provides petrochemical processing, biochemical manufacturing and plant fiber production, among others.
Dongying Liyuan is a subsidiary of the Shandong Wantong Petrochemical Group, which owns the largest oil and gas storage and transportation facilities in Dongying Port, China.
Shandong Dongming Petrochemical Group is an integrated petrochemical and energy technology development company. It is one of the top 500 largest companies in China.
UOP LLC (www.uop.com) is a leading international supplier and licensor of process technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries. UOP is a wholly-owned subsidiary of Honeywell International Inc. and is part of Honeywell's Performance Materials and Technologies strategic business group, which also includes Honeywell Process Solutions, a pioneer in automation control, instrumentation and services for the oil and gas, refining, petrochemical, chemical and other industries.
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes, and industry; turbochargers; and performance materials. For more news and information on Honeywell, please visit www.honeywellnow.com.
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