Chinese Firm to Use UOP Tech to Produce Isobutylene

UOP LLC, a Honeywell (NYSE: HON) company, announced Thursday that its Oleflexâ„¢ process technology has been selected to produce key ingredients to help meet the growing demand for fuel and petrochemicals in China.

Shandong Shouguang Luqing Petrochemical Co. Ltd. will use Honeywell’s UOP C₄ Oleflex process technology to produce isobutylene, a key ingredient for making high-octane fuel and synthetic rubber.

China is the world’s largest energy consumer and producer, according to the U.S. Energy Information Administration, and it has an increasing need for fuel and everyday items such as tires, healthcare supplies and consumer products, which are produced from isobutylene.

“China needs to produce more isobutylene to support its rapidly increasing consumption needs, so we are pleased to announce another C₄ Oleflex license to help meet this need,” said Pete Piotrowski, senior vice president and general manager of UOP’s Process Technology and Equipment business unit. “Oleflex technology is proven to have the smallest environmental footprint, the lowest cash cost of production, and the highest return on investment compared with competing technologies, and we look forward to continuing to offer this value in China and other parts of the world.”

The new unit, which is expected to start up in 2016, will produce approximately 170,000 metric tons annually of isobutylene at its facility in Shandong Province, China. UOP will provide the engineering design, technology licensing, catalysts, adsorbents, equipment, staff training and technical service for the project.

The C₄ Oleflex process uses catalytic dehydrogenation to convert isobutane to isobutylene. The technology consistently delivers superior performance due to its high reliability, low energy usage, high isobutylene yields, and a fully recyclable platinum alumina-based catalyst system using proven continuous catalyst regeneration (CCR) technology. In addition to the C­­­­₄ Oleflex process, UOP licenses its C­­­₃ Oleflex technology, a propane dehydrogenation (PDH) process to convert propane to propylene. Since the technology was commercialized in 1990, UOP has licensed more than 40 Oleflex units, worldwide including 17 in butane service.

Shandong Shouguang Luqing Petrochemical Co. is an independent integrated refiner that produces diesel, gasoline, liquefied petroleum gas, the gas additive MTBE, and polypropylene.