A new coal to liquids plant has gone online in China that is expected to produce the equivalent of 80 barrels of oil per day. China Petroleum & Chemical Corporation, one of the largest crude oil and petrochemical companies in China and Asia, along with Tulsa, Oklahoma-based Syntroleum Corporation celebrated the grand opening of the Sinopec/Syntroleum Demonstration Facility (SDF) today in Zhenhai, China. The process uses the Syntroleum-Sinopec Fischer Tropsch technology and is able to convert coal, asphalt and petroleum coke to synthetic petrochemical products.

The two companies entered into a technology transfer agreement in 2009 and as part of the deal, Sinopec relocated its natural gas fed Catoosa Demonstration Facility to the Zhenhai Refining and Petrochemical Complex. Upon success at demonstration scale, Sinopec plans to build a commercial scale plant.

“We are pleased to be working with Sinopec on the SDF,” said Gary Roth, President and Chief Executive Officer of Syntroleum. “This facility will make a significant contribution to the global endeavor to pursue alternative feedstocks for growing economies.”