Shaanxi Yanchang Petroleum Yanan Energy & Chemical Co. Ltd. will use proprietary Advanced Catalytic Olefins (ACO) technology developed by KBR and SK Innovation at a plant to be built in Shaanxi Province, China.

The ACO converter will have capacity of about 200,000 tonnes/year of ethylene and propylene.

KBR said the license and process design contract represents the first licensing of the technology, which catalytically cracks naphtha and other straight-run feeds with olefin yields exceeding those of traditional steam cracking.

SK Innovation, formerly SK Energy, last year started up an ACO demonstration plant at its chemical complex in Ulsan, South Korea.