Total and China Power Investment Join Forces to Study CTO Project in China    

French Total and the Chinese energy group China Power Investment Corporation intend to build a coal-based petrochemical plant in China. On November 4, the two companies signed a letter of understanding (LOU) in Paris during the state visit of the Chinese president, Hu Jintao, to study the construction of a world scale plant in coal-rich Inner Mongolia.
   Total will bring to this partnership its expertise in the Methanol to Olefins (MTO) and the Olefin Cracking Process (OCP) technology that Total Petrochemicals has tested extensively at its purpose-built semi-commercial plant in Feluy (Belgium). Total will also study solutions on how to capture and store carbon dioxide using the know-how gained from its CCS pilot project in Lacq (France).
   Under the LOU, both companies will now launch a feasibility study on a project of 1 million t/a polyolefins production site, based on methanol produced from the gasification of coal. The investment for the plant, which is due to start production after 2015, is estimated at 2 to 3 billion Euros and will mark a major step for a stronger development of Total in China. It will also give China Power Investment access to state of the art technology that incorporates highest environmental standards.
   The MTO technology allows the production of propylene and ethylene from methanol, which can be obtained from various feedstocks such as natural gas, coal or biomass. In combination with the OCP process, it allows a very high yield of polyolefin production.
   China Power Investment is one of the five biggest energy producers in China with a particularly strong position in coal mining and transformation of coal into energy. It is one of the most innovative power companies in China committed to sustainable development with significant investments on renewables, such as wind power and photovoltaic, and with two new nuclear power plants under construction as well as actively promoting the next generation of clean coal power stations.
   The Total Group has been present in China for about 30 years and is active in exploration and production, especially for natural gas, refining and marketing and chemicals.