Celanese will produce ethanol ahead of schedule

Technology and speciality materials firm Celanese is to begin producing ethanol in China earlier than previously scheduled.

In addition to the company's previous plans to develop a possible two greenfield units, Celanese plans to modify and enhance its existing integrated acetyl facility at the Nanjing Chemical Industrial Park with its TCX technology.

These modifications would add approximately 200,000 tonnes of ethanol production capacity by mid-2013, pending approvals, and would accelerate the project six to 12 months from its previous plan.

The new ethanol production would increase the overall profitability of the site by enhancing the mix of products manufacturing with the current capacity of certain critical raw materials available at the site. Total investment for the project is expected to be a fraction of the required capital for a greenfield facility.

Celanese's TCX technology produced ethanol from hydrocarbon-sourced feedstocks.

The company has also begun constructing a technology development unit for ethanol production at its facility in Clear Lake, Texas, US, which is expected to be operational by mid-2012. The new technology development unit and the R&D facility will create 50 technical jobs.

'This project acceleration allows us to begin industrial ethanol production significantly earlier than previously anticipated to capture demand growth in China and create value for our shareholders,' says chairman and CEO of Celanese David Weidman. 'We continue to progress on our previously announced greenfield options in China to meet our future growth objectives in the ethanol and acetyl industries.'