Dallas-based specialty materials firm Celanese Corp (NYSE:CE) intends to form an ethanol production technology joint venture (JV) in China with Chengzhi Shareholding (SHE:000990) of Tsinghua University.
Between 2014 and 2017, Celanese ran an industrial ethanol plant in Nanjing with a capacity of 275,000 tonnes per year. It used its TCX technology there and sourced feedstock from its acetic acid plant nearby.
On Wednesday, Celanese said it has signed a letter of intent (LoI) under which it would sell to Chengzhi the Nanjing ethanol unit and contribute its TCX technology, along with associated intellectual property (IP), to a JV to be created between the two firms. The goal of the new company would be to further strengthen the TCX ethanol process technology and seek additional opportunities for use of the technology in China.
The partners will aim to restart the Nanjing ethanol plant as soon as possible, likely in 2019, Celanese noted.
Definitive agreements are yet to be signed.
Article by Renewables Now: Celanese, Chengzhi plan ethanol partnership in China
Celanese, Chengzhi plan ethanol partnership in China