Air Products To Buy Shell's Coal Gasification Technology Business - Quick Facts

(RTTNews) - Industrial gases company Air Products (APD) said it has agreed to acquire Royal Dutch Shell plc's (RDS-B, RDSB.L, RDSA.L, RDS-A) Coal Gasification Technology business as well as Shell's patent portfolio for Liquids (Residue) Gasification.

Financial terms of the deal were not disclosed. The acquisition is expected to close in the coming months.

Air Products has extended its onsite supply model to use coal gasification to generate synthesis gas or syngas for major projects. The company noted that the acquisition of Shell's coal gasification process capabilities will further support its previously announced projects, such as Lu'An in Changzhi, Shanxi Province, China, and future projects.

"The acquisition of Shell's technology, already in operation at more than 20 coal gasification plants, gives us access and opportunities to fully explore outsourcing options to produce and supply syngas for customers planning to use gasification," said Seifi Ghasemi, chairman, president and chief executive officer at Air Products.

In addition, Air Products and Shell 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 that 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.