(EnergyAsia, February 8 2012, Wednesday) — Pratt & Whitney Rocketdyne, a member of US-based United Technologies Corp, said it has signed an agreement with two leading Chinese energy firms to design, construct and operate a commercial-scale advanced gasification demonstration plant in China’s central eastern Henan province.

P&W Rocketdyne described the “negotiation framework” agreement as a key step toward commercialising technology designed to lower the cost of coal gasification and provide an alternative fuel source that reduces water use and carbon dioxide emissions.

It said it, Zhongyuan Da Hua Group Company Ltd and East China Engineering Science & Technology Company will share the development costs for constructing and operating a demonstration plant, subject to the terms of a formal agreement currently being negotiated between the parties.

Neeta Patel, P&W Rocketdyne’s energy systems director, said:

“Their expertise in the areas of coal and chemical plant design, construction, operations and production, coupled with our experience in coal gasification, makes this an ideal partnership to prove the commercial readiness of our advanced, high-efficiency technology in a demonstration plant.”

Zhongyuan Da Hua Group Company Ltd is a wholly-owned subsidiary of state-owned Henan Coal Chemical Industry Group Co Ltd, which is China’s second-largest coal company and a specialist in coal-to-gas energy projects. It is also the largest industrial enterprise in Henan.

East China Engineering Science & Technology Company, with more than 40 years of expertise in coal and chemical production facility engineering, procurement and construction, has completed more than 2,000 projects including dozens of turnkey initiatives in 11 countries including China.

P & W Rocketdyne said its gasification technology provides a higher-efficiency and lower-cost alternative to current gasification systems. The capital cost to build a commercial-scale advanced gasification plant using the company’s technology is estimated to be 10-20% less than conventional gasification plants.

P & W Rocketdyne said its advanced gasifier is also expected to reduce carbon dioxide emissions by up to 10% and water usage by up to 30% compared to current gasification technologies.