The acquisition of its gasification business includes GE’s share in a 50/50 joint venture with China Shenhua Coal to Liquid and Chemical Company
Air Products, a US-based provider of gases and chemicals for industries, has completed the acquisition of gasification business from General Electric (GE)’s business arm GE Power.
The acquisition of its gasification business includes GE’s share in a 50/50 joint venture with China Shenhua Coal to Liquid and Chemical Company, a subsidiary of China Energy Group.
The joint venture was established in 2012 to provide technologies for gasification projects in China.
The transaction includes approximately 50 employees in total, including employees of the joint venture. The financial terms of the transaction were not disclosed.
Sale-of-gas business model of Air Products
Air Products said that through its sale-of-gas business model, it finances, builds, owns, operates and maintains the gas production at larger-scale, multi-billion-dollar gasification projects including the Lu’an, Juitai and Yankuang Group projects in China, along with the Jazan project in Saudi Arabia.
Air Products chairman, president and chief executive officer Seifi Ghasemi said: “The successful acquisition of the GE gasification technology further supports our long-term, strategic focus on gasification.
“This acquisition, combined with our other capabilities, gives us the ability to provide a complete solution to our customers, including financing, technology, engineering, construction, and operation of large syngas projects. We welcome the experienced and talented GE gasification team and look forward to supporting them to further grow the business.”
In May 2018, Air Products acquired the Coal Gasification Technology licensing business from Shell Global Solutions International for an undisclosed amount.
Under the transaction agreement signed earlier, the company purchased the associated patent portfolios for solids (coal and biomass) gasification and sharing of patent rights for residue and biomass gasification from Shell.
Air Products had also established a strategic alliance with Shell for residue gasification technology to refinery complexes.
The acquisition was expected to extend the company’s offerings in synthesis gas (syngas) to provide turn-key sale-of-gas gasification facilities for solids (coal and biomass) and liquids (refinery residues).