GE Energy has signed a deal on a coal-to-chemical plant production facility owned by the Guizhou Jinchi Chemical Co in China's Guizhou province.

This agreement is one of many similar contracts that GE Energy has in China, the company said. Guizhou Jinchi Chemical Co will use GE's gasification technology to produce syngas, which the company uses to produce chemicals at the Tongzi County project site.

Of the 32 projects in China that have licensed GE gasification technology since the mid-1970s, 23 are reportedly in commercial operation, GE said. More than 90 percent of the gasification equipment for these projects is manufactured locally in China.

"Companies across China are looking for cost-effective ways to manufacture products from available local resources. We're pleased that Guizhou Jinchi has selected GE's proven gasification technology to produce chemicals from local coal," said John Lavelle, general manager of GE Energy's gasification business.