Air Products has been doing business in China since 1987.
The company has signed a long-term agreement with Shanxi Lu'An Mining Co. Ltd. for Air Products to build, own and operate four air separation units producing oxygen, nitrogen, compressed instrument air and steam to supply Lu'An's multiple process trains at its coal gasification facility to be built in Changzhi City, Shanxi Province, China.
The first of the four units is targeted for onstream in July 2015. The remaining three are scheduled to be operational shortly thereafter, by October 2015.
Air Products said that China has significant coal reserves to produce syngas from the coal and then convert the syngas into fuel, chemicals and fertilizers.
At Lu'An's Changzhi City facility, the coal-to-liquids project will produce mainly diesel fuel and derivatives.
Air Products' air separation unit trains will include design enhancements to minimize operating costs through energy efficiency. Technology advancements and other productivity improvements support Air Products' overall sustainability goals of reducing energy consumption and emissions.