Dallas, Texas 07/15/2015 (Financialstrend) – Honeywell International Inc. (NYSE:HON) is at the threshold of another license agreement to converting ‘methanol to petrochemicals’ as a commercial venture in the near future. The company announced that China-based ‘Better Clean Energy’ had signed the license required to use Honeywell UPO’s MTO or Methanol To Olefins technology. This is the fifth such license agreement that the company has drawn with plastic manufacturers.
The technology is expected to help in producing high-value petrochemicals from methanol. The advanced processing technology was developed by UOP LLC, a company Honeywell. The technology is expected to be cost-effective as it helps in the conversion of methanol to petrochemicals. The beneficial factor is that the methanol is sourced from coal or natural gas and does not require crude oil, which is expensive. The technology will helps in creating components which are essential building blocks to manufacture plastics as well synthetics, as well other materials.
For Honeywell International Inc. (NYSE:HON) UOP, the new license agreement with Better Clean Energy comes after its first such license-agreement China’s Wilson Clean Energy, dated September 2013.
Better Clean Energy is expected to use Honeywell UOP technology to produce 300,000 metric tons of ethylene as well as propylene each year at a new facility established at Shandong province, in eastern parts of China. Honeywell UOP in addition to transferring the technology will also provide other training as well as engineering services as well as specialty equipment for running the technology.
Honeywell International Inc. (NYSE:HON) UOPs technology combines two processes – UOP/Hydro MTO process as well as the Total/UOP Olefin Cracking processes. This helps in enhanced yield production as well as improvement of efficiency. The process converts non-crude oil sources, of the likes of coal as well as natural gas into excellent sources for production of plastic. The conversion of coal and natural gas by this process into end products of ethylene as well as propylene is considered as breakthrough technology.