OREANDA-NEWS.  Seeking to boost its methanol production capacity while meeting stricter regional environmental regulations, Jiutai Group has selected GE’s (NYSE: GE) high-pressure gasification technology for a coal-to-methanol factory expansion project in the Dalu New Area of Zhungeer Banner in Ordos, Inner Mongolia, an autonomous region in northern China.

Jiutai Group, a private joint-stock enterprise, is the largest dimethyl ether producer in China. The company selected GE’s 8.7 megapascal, high-pressure gasification solution to enable the factory to boost methanol production to 1.5 million metric tons of coal-to-methanol annually, a 100 percent increase in capacity. GE’s solution is expected to reduce methanol production costs by as much as 11 percent compared to the original facility and will exceed China’s national energy efficiency rules that require industries to utilize more efficient, environmentally friendly technologies.

“GE’s high-pressure gasification process solution gives us a cost-effective and cleaner way to produce more methanol to help us meet our growing customer demands while promoting local economic development and cleaner air in accordance with national coal-to-chemical policies,” said Mr. Cui Lianguo, chairman, Jiutai Group.

The gasification system will allow Jiutai Group to more efficiently use China’s local coal resources as the raw feedstock. Operating at higher pressures allows the factory to increase production capacity while reducing Jiutai Group’s downstream process investment and operational expenses.

By reducing the factory’s coal consumption, GE’s technology also can help Jiutai Group lower overall plant emissions, underscoring a significant benefit of GE’s technology as China’s coal-to-chemicals industry continues to expand rapidly.

“We are excited that Jiutai Group has selected our high-pressure gasification technology for its methanol expansion project as China’s industrial sector expands the use of cleaner coal-to-chemical applications to comply with national efficiency rules,” said Yang Dan, general manage—Power Generation China at GE Power & Water. “Our technology, supported by our industry leading local customer service team, offers important economic and environmental benefits that will help Jiutai Group enhance its position and overall competitiveness.”

In 2012, GE announced the creation of its GE Shenhua Gasification Technology Company joint venture with the Shenhua Group to develop and deploy cleaner energy solutions in China, with a focus on using coal in a much cleaner way. The company combines GE’s expertise in coal gasification technology with Shenhua’s expertise in applying GE technology for coal gasification and coal-fired power generation.

For this project, GE Shenhua will supply the license for GE’s gasification technology, gasification process design package, technical services and key equipment. GE Oil & Gas also supplied three model DH7JM compressors to be used for polyethylene and polypropylene production. The compressors will be manufactured at GE’s service center in Houston, tested at its facility in Connersville, Indiana and shipped to China during 2014.

The expanded methanol production facility is scheduled to begin commercial production in 2016.

Around the world, GE has nearly 160 gasifiers in commercial operation, including 87 in China. GE has the largest fleet in the industry, with a global presence in 15 different countries. 72 gasification facilities operate under GE gasification licenses, including more than 40 GE-licensed gasification plants using commercial technology to separate carbon and more than 50 projects in China alone. GE’s gasification business offers more than 60 years of industry leading experience, proven technology and flexible engineered solutions.