China's independently developed methanol-to-olefin (MTO) technology is now gaining global recognition in the petrochemical industry. After six months of discussions and negotiations, Shaanxi Xinxing Coal Chemical Technology Development Co., Ltd. has recently entered into a marketing cooperation agreement with U.S.-based Lummus Corporation to promote and commercialize its low-carbon DMTO (Dimethyl Ether to Olefins) technology. The news was confirmed by the Dalian Institute of Chemical Physics, which holds the largest stake in Shaanxi Xinxing. Under the agreement, both companies will jointly promote DMTO technology worldwide, with Lummus taking on exclusive responsibility for marketing and licensing the technology outside of China. This partnership aims to leverage Lummus’s global presence and expertise to accelerate the international adoption of DMTO, helping it gain a stronger foothold in the global market. This collaboration marks a significant milestone in China’s efforts to export its clean energy and chemical technologies. The DMTO technology was first successfully tested in industrial settings in August 2006, with equipment performance and scale reaching world-leading standards. In early 2007, the National Development and Reform Commission approved the construction of a 600,000-ton-per-year olefins plant in Baotou, Inner Mongolia, which is expected to start operations in 2010. This will be the first large-scale industrial application of DMTO technology. In parallel with domestic licensing efforts, the Dalian Institute of Chemical Industry is actively expanding its international footprint. Following extensive discussions, Shaanxi Xinxing and Lummus have formed a strategic alliance to promote DMTO globally. Shaanxi Xinxing is a Sino-foreign joint venture established by the Dalian Institute of Chemical Physics, Shaanxi Coal Group, and Zhengda Coal Chemical Industry. It specializes in promoting and commercializing proprietary technologies developed by the Chinese Academy of Sciences, including full intellectual property rights over DMTO technology. Lummus, a leading global engineering and project management firm with over 100 years of experience, has a strong presence in the refining and petrochemical sectors. Known for its advanced technology in olefin recovery from MTO reactors, Lummus is well-positioned to support the global expansion of DMTO. This partnership signals a new chapter in China’s technological influence and its growing role in shaping the future of sustainable chemical production.

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