LIQUIDS FROM COAL PLANT DUE IN TENNESSEE

June 19, 1995
Eastman Chemical Co. and Air Products & Chemicals Inc. have received U.S. Department of Energy support for a U.S. joint venture that will demonstrate a new method to produce liquid fuels and chemical feedstocks from coal. Construction of a demonstration plant is to begin during the third quarter of this year with start-up set for fourth quarter 1996. The 260 ton/day plant, to be built in Kingsport, Tenn., at Eastman's coal gasification facility, will use Air Products' liquid phase

Eastman Chemical Co. and Air Products & Chemicals Inc. have received U.S. Department of Energy support for a U.S. joint venture that will demonstrate a new method to produce liquid fuels and chemical feedstocks from coal.

Construction of a demonstration plant is to begin during the third quarter of this year with start-up set for fourth quarter 1996. The 260 ton/day plant, to be built in Kingsport, Tenn., at Eastman's coal gasification facility, will use Air Products' liquid phase methanol technology.

The $214 million project will be jointly financed by DOE with more than $90 million in DOE funding under the agency's clean coal technology demonstration program.

Most of the methanol produced during the 4 year demonstration period will be used as a chemical feedstock in Eastman's facility at the site. Smaller volumes of the methanol will be used to demonstrate the product's suitability as a fuel and chemical feedstock.

Eastman said the project could be a preview of commercial plants in which coproduct methanol is made from coal-derived gas as an adjunct to integrated gasification combined cycle (IGCC) power plants.

Methanol is a key intermediate in Eastman's manufacture of acetic anhydride and dimethyl terephthalate.

Construction contracts have not yet been awarded.

DOE's clean coal program has 43 projects under way or completed in 20 states. The program represents nearly $2.5 billion in federal funds, matched by more than $4 billion in private sector cost-sharing.

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