DES PLAINES, Ill. -- UOP LLC, a Honeywell (NYSE: HON) company, has been selected by The Dow Chemical Company to provide technology to produce propylene at a Dow production site in Texas.

Dow Texas Operations will use Honeywell UOP C3 Oleflex technology in a new propane dehydrogenation unit to convert shale gas-derived propane to propylene, a product used in the production of packaging, adhesives, coatings, cleaners and many other end-use applications. The facility will produce 750,000 metric tons per year of polymer-grade propylene.

The unit is scheduled to start up in 2015. It will be the first of its kind in the United States and the largest single-train propane dehydrogenation plant in North America.

"There is a unique opportunity in todays market where shale gas development is driving lower prices and greater availability of propane as a feedstock for petrochemicals," said Pete Piotrowski, senior vice president for Process Technology and Equipment at Honeywells UOP. "This, along with global growth in propylene demand, makes the Oleflex process a highly attractive solution."

"This agreement represents another significant milestone in our comprehensive plan to further connect Dows U.S. operations with cost-advantaged ethane and propane feedstocks, based on the abundant shale gas deposits in the U.S.," said Jim Fitterling, Dow Executive Vice President and President of Feedstocks & Energy and Corporate Development. "Dow remains committed to our transformational strategy, and we continue to invest aggressively to strengthen the competitiveness of our Performance Plastics, Performance Materials and Advanced Materials businesses. As the largest consumer of propylene in non-polypropylene applications, Dow is pleased to partner with UOP for growth in the Americas."

The Oleflex process uses UOP CCR continuous catalyst regeneration technology to dehydrogenate propane to propylene over a platinum catalyst. Compared with alternative propane dehydrogenation processes, Oleflex technology provides the lowest cash cost of production and the highest return on investment. These outcomes are enabled by low operating and capital costs, minimum plot area requirements, excellent scalability, high propylene yield, and maximum operating flexibility.

Since the technology was commercialized in 1990, Honeywells UOP has commissioned nine C3 Oleflex units for on-purpose propylene production, with the 10th unit scheduled to start up in 2012 in Russia.

Dows industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture.

UOP LLC, headquartered in Des Plaines, Illinois, USA, is a leading international supplier and licensor of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries. UOP is a wholly-owned subsidiary of Honeywell International, Inc. and is part of Honeywells Performance Materials and Technologies strategic business group.