MORRISTOWN, N.J. (April 26, 12 p.m. ET) — Honeywell International Inc. is working on a one-step process to produce ethylene from the methane in natural gas.
Observers said if Honeywell can duplicate the process on a commercial scale, it could lower the cost of raw materials going into a range of plastics products – and give Honeywell a slice of the multi-billion dollar plastics raw material business.
Rajeev Gautam, chief executive of Honeywell's UOP petrochemical unit, told Bloomberg news that it would be several years before the technology is marketable.
“We have completed proof-of-concept experimental work and have seen good yields and performance,” he said. “The next step is to start working on development and scale-up of the technology.”
Gautam told Bloomberg the process could eventually save around 40 percent from the cost of ethane-based ethylene production, at current prices.