Both the companies have also signed a MOU to deepen strategic cooperation along the polyester raw materials value chain. Together they will also promote low-carbon products in China for the benefit of the environment.
China – BP and Xin Feng Ming Group Co., (Xinfengming) have recently entered into an agreement to license BP’s latest generation purified terephthalic acid (PTA) technology to Dushan Energy, a subsidiary of Xinfengming. The companies have also signed a memorandum of understanding (MOU) to deepen strategic cooperation along the polyester raw materials value chain and Xinfengming intends to deploy BP technologies for all Xinfengming’s future PTA and related investments.
Dushan Energy intends to build a 2.2 million tonnes per annum unit at Dushan Port Economic Development Zone in Pinghu, Zhejiang province. At present, the basic design of the PTA unit has been completed and construction has started on the site. The project is expected to commence production in Q3 2019.
The MOU on strategic cooperation covers Xinfengming’s further investments in PTA phase II utilising BP’s most advanced PTA technologies and related products. In addition, based on China’s move towards products with improved environmental performance, BP and Xinfengming will jointly promote low-carbon products in China.
Based on internal comparisons of conventional PTA technology with BP’s latest generation of PTA technology, there are significant reductions in both operational costs and capital costs, leading to high investment returns. BP’s technology is also renowned for its significant environmental performance with several Chinese government awards granted since Zhuhai start-up in 2003.
Through BP China’s research and development efforts, it introduced the latest generation PTA technology in its Zhuhai plant that delivered 65 % fewer GHG emissions, 75 % less water discharge and 95 % less solid waste disposal in its manufacturing process than the manufacturing process for conventional PTA technology of the 1990s.