USA: Technology Acquisition Air Products Acquires Shell's Coal Gasification Technology and Patents for Liquids Gasification
Air Products announced an agreement to acquire Shell’s Coal Gasification Technology business as well as the patent portfolio for Liquids (Residue) Gasification.
Lehigh Valley/USA — Air Products has extended its onsite supply model to use coal gasification to generate synthesis gas (syngas) for major projects. Acquiring Shell’s coal gasification process capabilities will further support previously announced projects, such as Lu’An in Changzhi, Shanxi Province, China, and future projects.
Gasification technologies offer a way to take varied lower-value feedstocks and convert them in a lower-emission manner into syngas. The company can then provide this syngas to customers to make higher-value products.
Shell’s technology is already in operation at more than 20 coal gasification plants. With the acquisition, the industrial gases supplier wants to explore outsourcing options to produce and supply syngas for customers planning to use gasification. Seifi Ghasemi, chairman, president and chief executive officer at Air Products emphasized that this acquisition supports the company's focus on providing a full scope of industrial gases, rather than a strategic shift into technology licensing.
In addition, the two companies also have formed a strategic alliance in Liquids Gasification to provide a range of solutions to the market, including engineering, procurement and construction activities and plant operations, as well as technology licensing. Ghasemi said Air Products looks forward to an important role as a project operating partner for the supply of industrial gases in the strategic alliance and leveraging Shell’s technology lead in the liquids gasification area, as demonstrated at the world-scale Jazan combined Gasification/Refinery project in Jazan Economic City, Saudi Arabia.
Financial terms are not being disclosed, and the acquisition is expected to close in the coming months.