GE Gasification Technology Licensed For Chemical Plant Expansion In China
BEIJING, CHINA - May 9, 2006 - GE Energy's gasification technology has been licensed for the expansion of a chemical plant owned and operated by Shaanxi Shenmu Chemical Industry Co., Ltd. (Shenmu Chemical) of Yulin City, Shaanxi Province, China.
Shenmu Chemical's 600,000 ton per year methanol project is located in Jinjie Industrial Park of Shenfu Economic Development Zone of Yulin Shaanxi Province. The project involves seven investors, including Shaanxi Provincial Investment Group Co. Ltd.
GE signed the licensing agreement with Shenmu Chemical and Shaanxi Huashan Chuangye Science & Technology Development Co., Ltd. GE's gasification technology will be installed at the Yulin plant as part of Phase II, to produce about 2.5 million normal cubic meters per day of syngas (carbon monoxide and hydrogen).
Under the leadership of Shaanxi Provincial Investment Group and Shenmu Chemical, Phase I of the project uses GE's gasification technology to produce 200,000 tons of methanol per year. Construction began in October, 2003 and the plant began successfully producing methanol in October, 2005. The new gasification plant-Phase II of the project-will use local Shenfu coal as fuel to produce 400,000 tons of methanol per year. It is expected to begin commercial operation in 2007.
In addition to the gasification license, GE will furnish a process design package for the gasification unit, while China Tianchen Chemical Engineering Corp. will carry out the detailed design work. GE also will assist in reviewing the detailed design drawings of critical equipment.
"Shenmu Chemical's methanol project converts abundant, local coal resources to value-added chemicals. This project has helped to accelerate local economical restructuring and cultivate economy increase factors that benefit the sustainable economical and social growth in the region," said Mr. He Ping, general manager of Shenmu Chemical.
Since GE Energy acquired Chevron Texaco's gasification technology in June of 2004, the company has signed six gasification licensing agreements in China. Overall, 27 licenses for this technology have been signed in China since the mid-1970s, including 17 projects currently in commercial operation. More than 90% of the equipment for these gasification projects is fabricated locally in China.
"Through our numerous projects in China, we have gained wide experience in gasifying various types of Chinese coal," said Steve Bolze, vice president of power generation for GE Energy. "In addition, we have gasification licensing and technology teams in place in China to provide local support to ensure the success of these projects."
About GE Energy
GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2005 revenue of $16.5 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels. Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.
About Shenmu Chemical
Shenmu Chemical embraces a global vision that quality is number one and the customer comes first. It is market-demand oriented with a core management of science and technology, adopting world-class advanced technologies to develop and make itself a leading chemical enterprise. Shenmu Chemical has near term plans to produce 1.2 million tons of methanol per year and 300,000 tons of acetic acid per year, for total annual sales income of more than RMB four billion, and long term plans to produce 1.8 million tons per year of methanol, 300,000 tons per year of acetic acid and 600,000 tons per year of ethylene and propylene, for annual sales income of RMB eight billion.
For more information, contact:
Dennis Murphy
GE Energy
+1 678 844 6948
dennis.murphy@ge.com
Ken Darling or Howard Masto
Masto Public Relations
+1 518 786 6488
kenneth.darling@ge.com
howard.masto@ge.com
