Air Products is in the process to acquire Shell’s Coal Gasification Technology business along with its patent portfolio for Liquids Gasification. The two companies have also formed a strategic alliance in the Liquids Gasification field and intend to offer a range of solutions to the market.
Pennsylvania/US – Air Products has recently announced an agreement to acquire Royal Dutch Shell’s Coal Gasification Technology business as well as Shell’s patent portfolio for Liquids (Residue) Gasification. Financial terms are not being disclosed, and the acquisition is expected to close in the coming months.
As a leading industrial gas company, 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 by Air Products, such as Lu’An in Changzhi, Shanxi Province, China, and future projects.
Shell has been at the forefront of gasification innovation over the past 50 years. 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 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.