Celanese Corporation (NYSE: CE), a global technology and specialty materials company, announced today the signing of a memorandum of understanding (MOU) with Wison (China) Holding Co., Ltd., a Chinese synthesis gas supplier, for production of certain feedstocks used in Celanese’s advanced ethanol production process.
Today’s announcement with Wison was made in conjunction with Chinese President Hu Jintao’s State Visit to Washington, D.C., this week and a U.S. Department of Energy-sponsored signing ceremony recognizing key U.S.-China energy projects. The Celanese-Wison relationship was recognized by the Obama Administration in a White House fact sheet titled U.S.-China Commercial Relations.
The Department of Energy signing ceremony was coordinated by the U.S.-China Energy Cooperation Program (ECP), a private sector-led organization that facilitates the adoption of clean energy technologies in China and leverages business resources in the U.S. and China to promote commercially viable project development work in clean energy and energy efficiency. A founding management board member of the U.S.-China Energy Cooperation Program, Celanese has long been a leader in China on important energy and environmental issues. The company’s Nanjing Integrated Chemical Complex is a model for efficient production, sustainable energy use and innovative technological advancements in the company’s multiple production units at the site.
Celanese Ethanol Production in China
Celanese previously announced its intention to construct manufacturing facilities in China that will use its newly-developed and proprietary advanced technology to produce industrial ethanol. Celanese intends to construct one, and possibly two, ethanol complexes in China to serve the fast-growing demand in Asia. The company also announced its intention to explore opportunities in China and other countries for the application of its technology in the global fuel industry.
“Celanese has developed a commercially ready technology that is economically advantaged, reduces environmental impact and increases flexibility in ethanol production in China without using food sources in a fermentation process,” said Steven Sterin, chief financial officer and the Celanese executive leading the company’s Advanced Fuel Technologies business. “The signing of this MOU with Wison further demonstrates our commitment to support China’s growing needs.”
Celanese estimates it will initially invest approximately US$300 million to build the first production unit in China. It is estimated that more than 1,250 jobs will be created in China to support the construction, operation and supply infrastructure of the first ethanol plant.
Energy Demands in China
Celanese believes its advanced ethanol production technology will bring considerable benefits to China because it uses non-food feedstocks that do not stress the food supplies and do not adversely impact the use of arable land. In addition to meeting industrial ethanol demands, the company could produce fuel-grade ethanol to help China reduce its dependence on imported oil and lower automotive air emissions.
“Celanese has developed proprietary technology to efficiently use outputs from clean coal operations to produce ethanol with significant economic, energy reduction and environmental advantages when compared to other ethanol production technologies,” said Jim Alder, senior vice president, Operations & Technical. “Celanese’s ethanol production has high feedstock-to-ethanol conversion ratios, can use a variety of abundant hydrocarbon resources such as coal and pet coke, and is highly scalable, which allows capacity at each facility to be more than doubled at significantly less than the original investment.”