31-12-2013

Johnson Matthey announces further investments in catalyst manufacturing in China

Johnson Matthey announces it is planning to make additional investments in China to support its growing process catalyst and technology licensing business. The company has acquired land near Shanghai and has commissioned design work with the intention of constructing a multi hundred million RMB facility to manufacture catalysts for the production of substitute natural gas (SNG) from coal in China. Subject to achieving a satisfactory design, construction of the new facility is expected to commence in 2014.

The Chinese coal-to-chemicals market has been growing rapidly in response to increasing demand for petrochemicals, transport fuels and clean forms of energy, such as SNG. Johnson Matthey has used its global experience as a technology developer and licensor to support this growth through provision of modern process technology and catalysts. In particular, Johnson Matthey, through its Johnson Matthey Davy Technologies business, has licensed technology and supplied catalyst to world-scale methanol, oxo-alcohol and SNG projects in China. SNG is especially significant as it allows abundant supplies of Chinese coal to be efficiently converted to clean-burning gaseous fuel which improves overall energy security in a time of increasing demand and also leads to improvements in air quality in major cities. An added benefit of the SNG production process is the generation of concentrated streams of carbon dioxide that can be used for enhanced oil and gas production or geologic storage, thus contributing to the mitigation of greenhouse gases.

Johnson Matthey's success in the SNG market has been built on experience gained through use of its catalysts in the North Dakota coal-to-SNG plant, which was, for many years, the world's only such commercial plant. Johnson Matthey's success in the Chinese SNG market began in 2009 when it supplied the industry's first technology licence, to Datang Energy and Chemical Company. Datang, who operate the world's largest coal-to-SNG production site, has successfully commissioned its first plant and followed this with contracts with Johnson Matthey for three further plants. In total to date, Johnson Matthey has secured licence and catalyst supply contracts for seven commercial SNG projects in China.

To support existing customers, and in anticipation of further strong growth in the SNG market, Johnson Matthey plans to invest in further catalyst production in China. This will allow greater supply flexibility for its customers. Johnson Matthey has also expanded its commercial and technical service office in Beijing to provide stronger local support to the growing coal-to-chemicals market in China.

Johnson Matthey already has a strong presence in China and this latest announcement follows previous catalyst manufacturing investments in the country, which include catalysts for vehicle emission control and sour shift catalysts, another key enabling technology in the coal-to-chemical industry.

Johnson Matthey looks forward to providing greater support to the Chinese coal-to-chemicals industry through catalyst and technology developments, improved global and regional catalyst manufacturing and stronger local customer support.

For more information, please visit www.jmcatalysts.com/refineries