US firm inks deal with two Chinese energy leaders to build gasification plant

Find out how the deal could benefit China power market.

Pratt & Whitney Rocketdyne has signed a negotiation framework agreement with Zhongyuan Da Hua Group Company Ltd. and East China Engineering Science & Technology Company to design, construct and operate a commercial-scale advanced gasification demonstration plant in China’s central eastern Henan Province. The agreement is a key step toward commercializing technology designed to lower the cost of coal gasification and provide an alternative fuel source that reduces water use and carbon dioxide emissions.

Pratt & Whitney Rocketdyne is a United Technologies Corp. (NYSE:UTX) company. Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and commercial building industries.

Under the framework, Zhongyuan Da Hua Group Company Ltd. and East China Engineering Science & Technology Company will share development costs for construction and operation of a demonstration plant with Pratt & Whitney Rocketdyne, subject to the terms of a formal agreement currently being negotiated between the parties.

Pratt & Whitney Rocketdyne’s gasification technology provides a higher-efficiency and lower-cost alternative to current gasification systems. The capital cost to build a commercial-scale advanced gasification plant using Pratt & Whitney Rocketdyne’s technology is estimated to be 10 to 20 percent less than conventional gasification plants. Pratt & Whitney Rocketdyne’s advanced gasifier is also expected to reduce carbon dioxide emissions by up to 10 percent and water usage by up to 30 percent compared to current gasification technologies.

Pratt & Whitney Rocketdyne has collaborated with ExxonMobil Research and Engineering Company (EMRE), and with Canada’s Alberta Innovates – Energy & Environmental Solutions (EES) and the Illinois Department of Commerce and Economic Opportunities (DCEO) to develop this technology. Pratt & Whitney Rocketdyne has also granted a worldwide license to Zero Emission Energy Plants, Inc. (ZEEP) to use the technology in the development of commercial energy centers.

“Pratt & Whitney Rocketdyne is honored to partner with Zhongyuan Da Hua Group Company and East China Engineering Science & Technology Company,” said Neeta Patel, director, Energy Systems, Pratt & Whitney Rocketdyne. “Their expertise in the areas of coal and chemical plant design, construction, operations and production, coupled with our experience in coal gasification, makes this an ideal partnership to prove the commercial readiness of our advanced, high-efficiency technology in a demonstration plant.”

Zhongyuan Da Hua Group Company Ltd is a wholly-owned subsidiary of Henan Coal Chemical Industry Group Co. Ltd., a state-owned enterprise in China Henan Province. Henan Coal Chemical Industry Group Co. Ltd, the 2nd largest coal company in China and the largest industrial enterprise in Henan, specializes in coal-to-gas energy projects. East China Engineering Science & Technology Company, with more than 40 years of expertise in coal/chemical production facility engineering, procurement and construction, has completed more than 2,000 projects including dozens of turnkey initiatives throughout China and 10 other countries.