Shandong Chambroad commissions first propylene and isobutylene coproduction plant in China

13-Aug-15

Shandong Chambroad Holding Co., Ltd. has become the first company in China to commission a combined C3/C4 dehydrogenation unit to meet growing demand in Asia for plastics, high-octane gasoline and synthetic rubber. The new unit, which is the first of three in China, uses Honeywell UOP's C3/C4 Oleflex™ process technology to produce propylene, a building block for making plastics, packaging and synthetic fiber, and isobutylene, a component used for high-octane gasoline and synthetic rubber. The unit, which is only the second of its kind in the world, successfully started up in May and all production targets have been accepted. Two other Chinese producers have also licensed the technology for start up in 2017. Located in Binzhou City, Shandong Province, the new unit will produce 116,000 metric tpa of propylene and 104,000 metric tpa of isobutylene "As the demand for transportation fuels and petrochemicals continues to grow in China, petrochemical companies there see a real benefit from integrating processes," said Mike Millard, vice president and general manager of Honeywell UOP's Process Technology and Equipment business. "The start up of the first combined C3/C4 Oleflex unit in China is a milestone in the region's petrochemical production, and it will help Chambroad manage market conditions more efficiently" China consumes more than 15% of the world's propylene and its demand is growing more than 4% pa, according to the U.S. Energy Information Administration. At the same time, gasoline demand is expected to grow in China as a result of a growing middle class and higher car sales. Honeywell UOP's C3/C4 Oleflex technology uses catalytic dehydrogenation to convert propane to propylene and isobutane to isobutylene. Using mixed dehydrogenation, the processes are combined to produce both materials in a single unit. The technology is proven to have the lowest cash cost of production and the highest return on investment compared with competing technologies