MTO technology helps petrochemical producers to produce ethylene and propylene from economic coal and natural gas feedstock rather than the costly liquefied petroleum gas or oil, and meet the growing demand for the products.

Jiangsu will employ MTO technology at its new, under-construction unit located in Lianyungang City, Jiangsu Province, China, to convert methanol from gasified coal into key plastics building blocks.

Jiangsu Sailboat’s unit, upon completion, is expected to produce 833,000 metric tons of ethylene and propylene every year and also provide feedstock to downstream units by producing 4 million metric tons per year of petrochemical products.

US-based Honeywell’s subsidiary and process technology supplier and licensor, UOP, will also provide engineering, training, technical services, catalysts, adsorbents and specialty equipment for the project.

The unit is expected to begin operations in 2015.