Shenhua and Dow are to sign a cooperation agreement and announce plans for a detailed feasibility study, bringing the companies closer to building a world-scale coal-to-chemicals complex in
Dow says the project will use “clean coal” technologies that convert coal to methanol to produce ethylene and propylene, the building blocks to make various plastics and chemical products.
The complex will include a chlor-alkali unit, enabling the production of products such as caustic soda, vinyl chloride monomer and chlorinated organics. Other derivative products being planned for the complex include glycols, amines, solvents, surfactants, acrylic acid and derivatives and propylene derivatives.
The feasibility study will encompass environmental impact assessment, water supply, front-end loading engineering design, market and product mix, logistics and supply chain, and economic evaluation.
The feasibility study is expected to take approximately two years. The two companies will then compile a project application report based on the feasibility study and submit that to the Chinese government for approval.