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China: Coal-to-Clean-Fuels Project Air Products and Shanxi Jincheng Sign Supply Agreement for Industrial Gases

Editor: Alexander Stark

Air Products has signed an agreement with a subsidiary of Shanxi Jincheng Anthracite Coal Mining Group, a Chinese coal mining conglomerate, for the supply of industrial gases to Phase One of Shanxi Jinmei Huayu Coal Chemical (Jinmei Huayu’s) coal-to-clean-fuels project in Jincheng City, Shanxi Province.

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Representatives of Air Products and Shanxi Jincheng Anthracite Coal Mining Group during the signature of the agreement.
Representatives of Air Products and Shanxi Jincheng Anthracite Coal Mining Group during the signature of the agreement.
(Source: Air Products)

Lehigh Valley/USA — Previously, the industrial gases company signed a sale of equipment agreement with Jinmei Huayu to supply two air separation units (ASUs) — with a total capacity of over 4,000 tons per day — for this project, which uses coal to produce clean fuels.

Now, Air Products intends to buy back the two ASUs for approximately $ 100 million and supply industrial gases via pipelines to Jinmei Huayu under a long-term supply agreement, subject to finalization of a buy-back agreement and any government and regulatory approvals. The ASUs are expected to be onstream in mid-2018.

This agreement follows Air Products’ recent major investments with Lu’An in Changzhi, Shanxi Province and Yankuang in Yulin, Shaanxi Province to support China’s ongoing transformation and upgrade of its coal chemical industry that targets products with higher added-value and sustainability.

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