USA: Business Expansion Air Products Signs Contract to Acquire GE’s Gasification Technology and Business
Once complete, the deal will enable Air Products to increase its gasification business footprint across the globe. The company is also expected to develop its synthesis gas solutions via GE’s gasification technology.
Pennsylvania/USA – Air Products has recently announced that it has signed an agreement to acquire General Electric (GE) Company’s gasification business. This transaction will allow Air Products to expand its synthesis gas (syngas) solutions product offerings and its presence in build, own and operate gasification projects around the world.
Financial terms of the transaction are not being disclosed. The acquisition is expected to close following the receipt of any necessary regulatory approvals and satisfaction of customary closing conditions.
As part of Air Products’ overall syngas solutions offering, these cross-selling opportunities could include air separation units, pressure swing absorbers, carbon monoxide cold box equipment, as well as generate other business opportunities in plant support and cryomachinery.
The gasification business being acquired by Air Products includes GE’s share of its 50/50 joint venture (JV) with China Shenhua Coal to Liquid and Chemical Company, a subsidiary of China Energy Group, a world-class energy company. The JV, formed in 2011, provides technologies for gasification projects in China. The acquisition also includes over 1,000 patents relating to GE’s gasification technology, which has been deployed at over 90 sites, with over 240 gasifiers, and represents over 36,000 MWth (thermal megawatts) of syngas production.
The GE gasification technology has an extensive track record of processing solid, liquid, gaseous, and blended feedstocks. Air Products looks forward to continuing to support existing and future gasification licensees. Gasification technologies offer a way to take varied lower-value feedstocks and convert them in a lower-emission manner into syngas. Air Products can then provide this syngas to customers to make higher-value products.
In the company’s sale-of-gas business model, Air Products finances, builds, owns, operates and maintains the gas production plant, so its customers can focus their attention and capital on their primary business.