Dow Chemical picks UOP to provide technology for U.S. facility
PRNewswire
Des Plaines-based UOP LLC, a Honeywell (NYSE: HON) company, said it has been selected by The Dow Chemical Company to provide technology to produce propylene at a Dow production site in Texas.
Dow Texas Operations will use Honeywell UOP C (3) Oleflex technology in a new propane dehydrogenation unit to convert shale gas-derived propane to propylene, a product used in the production of packaging, adhesives, coatings, cleaners and many other end-use applications. The facility will produce 750,000 metric tons per year of polymer-grade propylene.
The unit is scheduled to start up in 2015. It will be the first of its kind in the United States and the largest single-train propane dehydrogenation plant in North America.
“There is a unique opportunity in today’s market where shale gas development is driving lower prices and greater availability of propane as a feedstock for petrochemicals,” said Pete Piotrowski, senior vice president for process technology and equipment at Honeywell’s UOP. “This, along with global growth in propylene demand, makes the Oleflex process a highly attractive solution.”
Jim Fitterling, Dow executive vice president and president of feedstocks & energy and corporate development, added the agreement represents “another significant milestone in our comprehensive plan to further connect Dow’s U.S. operations with cost-advantaged ethane and propane feedstocks, based on the abundant shale gas deposits in the U.S.
“Dow remains committed to our transformational strategy, and we continue to invest aggressively to strengthen the competitiveness of our Performance Plastics, Performance Materials and Advanced Materials businesses,” Fitterling said. “As the largest consumer of propylene in non-polypropylene applications, Dow is pleased to partner with UOP for growth in the Americas.”
Since the technology was commercialized in 1990, Honeywell’s UOP has commissioned nine C (3) Oleflex units for on-purpose propylene production, with the 10th unit scheduled to start up in 2012 in Russia.