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Air Products to buy Shell coal gasification technology

Coal News - Published on Thu, 11 Jan 2018

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Morning Call reported that Air Products is buying the coal gasification technology business of oil and gas giant Royal Dutch Shell. The deal increases Air Products’ capacity to generate synthesis gas, or syngas, for existing and future major projects. The Trexlertown-based Fortune 500 company will also acquire Shell’s portfolio of patents for liquid gasification.

The companies did not disclose financial terms of the deal, which is expected to close in the coming months.

Syngas is a mixture of carbon monoxide and hydrogen that can be produced from coal, among other lower-value raw materials. It then can be converted into fuel, chemicals and fertilizers. Gasification technologies offer a lower emission way to turn coal into syngas.

Shell, based in the Netherlands, has been at the forefront of gasification innovation over the past 50 years.

Mr Seifi Ghasemi chairman, president and chief executive officer at Air Products said that “The acquisition of Shell’s technology gives us access and opportunities to fully explore outsourcing options to produce and supply syngas for customers planning to use gasification.”

Air Products signed an agreement in November to build, own and operate a USD 3.5 billion coal-to-synthesis production facility in Yulin City, Shaanxi Province, China. In September, it formed a USD 1.3 billion joint venture with another Chinese coal mining company that involves supplying syngas under a 20-year onsite contract.

Air Products said that the Shell deal will further support these projects, among others. Ghasemi also emphasized that the deal does not represent a strategic shift into technology licensing, but supports its “continued focus on providing a full scope of industrial gases.”

Ghasemi has aggressively pursued onsite supply contracts because they generate a stable and long-term source of income.

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Posted By : Nanda Koijam on Thu, 11 Jan 2018
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