Major Coal Gasification Contract in China

Air Liquide (France) has just signed a long-term contract with Fujian Shenyuan New Materials Co., Ltd (Fujian Shenyuan) to supply industrial gases for its caprolactam production project located in Lianjiang Kemen Economic & Development Zone, Fujian Province, South-East of China.

Under the terms of the contract, Air Liquide will invest in an industrial gases complex of eight units including an Air Separation Unit of 2,000 tonnes of oxygen per day, a Gasification unit, a Purification unit of synthesis gas (RectisolTM) and an ammonia plant to supply hydrogen, nitrogen and ammonia. Six plants out of the eight of the complex are based on Air Liquide’s proprietary world-leading technologies. They will contribute to purify synthesis gas and avoid sulphur emissions, which are notably responsible for acid rain. In addition, Air Liquide possesses strong operations and engineering integration capabilities in China as well as expertise in coal gasification in terms of energy efficiency, enabling the Group to operate a full supply chain from coal and oxygen to pure hydrogen.

These plants, to be commissioned beginning of 2016, will produce 75,000 Nm3/h of hydrogen and 250,000 tonnes per year of ammonia. Pure oxygen is used to transform coal in synthetic gas, to produce hydrogen. Hydrogen and ammonia are necessary for the production of caprolactam, an intermediate for nylon in the textiles industry.

Fujian Shenyuan is a private company. The Group who owns Fujian Shenyuan also owns two other downstream companies, to which Fujian Shenyuan will supply 100% of its caprolactam production. These two companies together have a 12% market share of the nylon textile filament market in China.

Chairman Chen of Fujian Shenyuan, said: “We are delighted to cooperate with Air Liquide, with which we share the same long term industrial vision, and have full confidence in its technological capability tomeet our demand.”

Jean-Marc de Royere, Senior Vice-President Asia-Pacific and a member of Air Liquide Executive Committee, commented: “By leveraging the Group’s technologies, as well as excellent project and operations skills of our teams in China, we will provide our customer with high value-added solutions. This project enables to valorise natural resources using our technologies to increase the competitiveness of our customer. Our cutting-edge technologies allow us to open newmarkets.”