Air Products (NYSE: APD) today announced it has completed the acquisition of the remaining 50 percent equity stake in its gasification technology joint venture (JV) with China Shenhua Coal to Liquid and Chemical Co. Ltd., a subsidiary of China Energy Group. Financial terms of the transaction are not being disclosed.
Air Products acquired its initial 50 percent equity stake in the JV as part of its acquisition of General Electric Company’s (“GE”) gasification business from GE Power in 2019.
This transaction further strengthens Air Products’ broader gasification technology portfolio and integrates technical and engineering resources in China.
“Our latest investment is another step to support our gasification growth strategy that addresses the world’s energy and environmental challenges. We continue to execute several megaprojects in China and around the world. The acquisition further strengthens our position to leverage our complete gasification technology portfolio to serve our customers,” said Seifi Ghasemi, chairman, president and chief executive officer at Air Products.
Air Products continues its leadership in gasification projects around the world. Last year, Air Products announced a US$2 billion coal-to-methanol project located in Indonesia. The company is also executing a number of world-scale gasification projects including the Jiutai and Debang projects in China, as well as the Jazan project in Saudi Arabia.
Air Products has been successfully building, owning, and operating facilities under the “Sale of Gas” model for many decades. The company’s portfolio includes more than 40 years of gasification experience, extensive capabilities, industry-leading technologies, and operational expertise. Air Products Syngas Solutions™ offers complete turnkey gasification complexes to convert a wide range of lower-value hydrocarbon feedstocks into synthesis gas for making higher value products and power.