Celanese signs LOI with Chengzhi Shareholding to further develop acetic acid-based ethanol

In Texas, Celanese Corporation announced that it has signed a Letter of Intent (LOI) with Chengzhi Shareholding Co., Ltd., to further the development of acetic acid-based ethanol as a clean energy source in China.

From 2014 to 2017, Celanese operated a 275,000 metric ton per year industrial ethanol unit at the Nanjing, China Chemical Industrial Park. This ethanol unit used Celanese’s TCX® technology to produce ethanol and historically sourced feedstock from the company’s acetic acid plant co-located at its Nanjing manufacturing facility.

Pursuant to the LOI, Celanese would sell its Nanjing ethanol unit to Chengzhi, along with all related assets, including equipment, storage tanks and pipelines as well as all necessary land rights and permits. Additionally, Celanese would contribute its TCX® technology, along with all associated patents, know-how and trade secrets, into a newly formed joint venture. Through this joint venture the two companies would collaborate to further strengthen the TCX® technology and promote additional opportunities for utilizing the TCX® ethanol process technology within the People’s Republic of China.