China's leading coal miner Shenhua Group and US-based Dow Chemical Company have signed an agreement for a clean coal plant in China, state media said Wednesday. The project will use "clean coal" technologies that convert coal to methanol to produce ethylene and propylene, the building blocks of various plastics and chemical products, the China Daily reported.
"This project aligns with Dow's strategy to invest in growth geographies like China," said Andrew Liveris, chairman of Dow.
"It will build Dow's competitive position to serve customers in Asia with locally produced products and solutions."
The agreement was signed on Monday, bringing the two parties one step closer to building a world-class coal-to-chemicals complex in northwest China's Shaanxi Province, said a statement posted on Dow's website.
No financial details of the deal were released. A feasibility study will be completed in about two years.
Source: Agence France-Presse
