DES PLAINES, Ill., Nov. 8, 2012 /PRNewswire/ -- UOP LLC, a Honeywell (NYSE: HON) company, announced today the third technology license for its breakthrough methanol-to-olefins (MTO) technology, which converts methanol from coal into key plastics building blocks. China's Shandong Yangmei Hengtong Chemicals Co. Ltd. will use Honeywell UOP's advanced MTO process, which combines Honeywell's UOP/Hydro MTO process and the Total Petrochemicals/UOP Olefin Cracking process to convert methanol from gasified coal into ethylene and propylene, building block materials used in the production of films, packaging, plastics and other petrochemicals. China is the world's largest producer of coal, accounting for nearly half of global production, according to the U.S. Energy Information Administration, making it an attractive alternative feedstock for in-country production of plastics building blocks. "UOP's advanced MTO solution allows petrochemical producers in China such as Shandong to tap abundant and cheap coal resources, produce high yields of valuable petrochemicals, and reduce operating costs," said Pete Piotrowski, senior vice president and general manager of Honeywell's UOP Process Technology & Equipment business unit. "This technology will help Shandong meet growing demand in China for ethylene and propylene." Shandong will use UOP's advanced MTO solution to produce more than 295,000 metric tons ethylene and propylene annually at its facility in Tancheng, Linyi City, China. In addition to technology licensing, Honeywell's UOP will provide basic engineering, catalysts, adsorbents, specialty equipment, technical services and training for the project, which is expected to start up in 2014. The MTO process, jointly developed by Honeywell's UOP and INEOS (formerly Hydro), converts methanol derived from crude oil and non-crude oil sources such as coal or natural gas to ethylene and propylene. The process, based on proprietary UOP catalysts, is proven to provide high yields with minimal byproducts. MTO also offers flexibility in the quantity of propylene and ethylene produced, so producers can adjust plant designs to most effectively address market demands.