Clariant Wins Catalyst Deal for World’s Largest PDH Unit

Clariant has secured a major catalyst supply contract from Zhejiang Petroleum & Chemical Co., Ltd. (ZPC) for a new propane dehydrogenation (PDH) facility in Zhejiang Province, China. The project will use Clariant’s CATOFIN™ catalyst and Heat Generating Material (HGM) and is set to become the world’s largest licensed PDH unit, with a nameplate production capacity of 1.2 million metric tons per year.

The contract represents a significant milestone for Clariant’s Catalyst business and strengthens the company’s position in the rapidly expanding global PDH market. The facility is expected to play an important role in supplying propylene for downstream petrochemical applications, while ZPC’s expanding refinery operations will provide additional propane feedstock required for the project.

According to Clariant, ZPC’s selection of CATOFIN technology reflects the catalyst’s established reliability, production efficiency and performance across large-scale PDH operations. CATOFIN is designed to support high propylene yields while maintaining strong operational reliability and cost competitiveness, factors that become increasingly important as producers develop larger petrochemical facilities.

The project also highlights the collaboration between Clariant and Lummus Technology. Lummus contributes process technology and engineering expertise, while Clariant provides the catalyst and HGM technology. Their combined offering is intended to enable operators to achieve high production rates, consistent plant performance and competitive operating costs.

Lummus said the selection of CATOFIN for the world’s largest PDH unit demonstrates confidence in the technology’s established operating track record. The company noted that CATOFIN has repeatedly demonstrated its ability to meet or exceed designed production capacities, making it an attractive option for producers seeking to expand propylene output.

Clariant’s CATOFIN technology has been continuously developed for more than six decades. Since 2017, the technology has been selected for more than 40 new PDH projects globally, highlighting its growing presence in the international propylene production industry.

The new ZPC facility is expected to contribute significantly to China’s propylene supply chain. Its output will be directed toward the manufacture of higher-value petrochemical derivatives, potentially supporting downstream products such as polypropylene and other propylene-based chemicals.

The award therefore represents more than a catalyst supply agreement. It reinforces Clariant’s technological position in PDH applications while supporting ZPC’s strategy of integrating refinery feedstocks with large-scale petrochemical production. The project also reflects continued investment in propylene capacity as producers seek to meet growing demand for downstream petrochemical products.

Chemical Commodity Price Impact

The contract should strengthen demand for Clariant’s CATOFIN catalyst and HGM while expanding its presence in the global PDH market. For propylene, the 1.2 million tonnes/year facility will eventually add substantial supply to China, potentially exerting downward pressure on domestic propylene prices once the plant reaches stable commercial operation, particularly if downstream demand does not grow at the same pace. Increased propylene availability could also improve feedstock economics for polypropylene and other propylene derivatives. However, higher propane consumption may support propane demand and prices regionally. The overall price effect will depend heavily on commissioning timing, operating rates, refinery integration and downstream petrochemical demand.