(EnergyAsia, August 3 2011, Wednesday) — China Petroleum & Chemical Corporation (Sinopec) and Syntroleum Corporation, a Tulsa, Oklahoma company said they have started up their jointly-owned 80 b/d demonstration plant in Zhenhai district in China’s Zhejiang province. The plant uses the Syntroleum-Sinopec Fischer Tropsch technology to convert coal, asphalt and petroleum coke into high value synthetic petrochemical feedstocks.

As part of the a technology transfer agreement signed in 2009, Sinopec relocated Syntroleum’s natural gas fed the Catoosa demonstration plant to the Zhenhai Refining and Petrochemical Complex in Ningbo City in Zhejiang.

Upon successful completion of the Zhenhai programme, Sinopec plans to build commercial-scale coal and petroleum coke-based Fischer Tropsch facilities using the Syntroleum-Sinopec technology.

Gary Roth, Syntroleum’s President and CEO, said the plant will make a “significant contribution to the global endeavor to pursue alternative feedstocks for growing economies.”

Sinopec, the first Chinese company to be listed in the exchanges of Hong Kong, New York, London and Shanghai, is an integrated energy and chemical company with upstream, midstream and downstream operations. Based on 2010 turnover, Sinopec is the largest listed company in China.

Syntroleum Corporation owns the Syntroleum® Process for Fischer-Tropsch (FT) technology to convert synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining® Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining™ technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock.

Syntroleum and Sinopec established their equal joint venture, Dynamic Fuels, to construct and operate multiple renewable synthetic fuels facilities, with production at the first plant starting last year.

Dynamic Fuels plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects.