BASF and Lutianhua signed a Memorandum of Understanding (MoU) to co-develop a pilot production plant, that will significantly reduce carbon emissions and increase energy efficiency in producing dimethyl ether (DME) from syngas compared to the traditional process. DME is a methanol equivalent and can be used as an intermediate to produce lower olefins like ethylene and propylene. Currently, DME is produced via methanol as an intermediate from syngas. The pilot plant is planned to be built in 2020.

According to the MoU, Lutianhua will invest and build the plant with the new technology that is developed by BASF and Linde. BASF will supply new, high-performance catalyst systems that allow one-step conversion of syngas to DME. Linde will provide its newly developed process design and engineering for direct DME synthesis.

• Sichuan Lutianhua Co., Ltd. (Lutianhua), China 
• BASF SE, Ludwigshafen, Germany
• Linde AG, Munich, Germany