International industrial gases provider Air Products announced an agreement to acquire Royal Dutch Shell Plc's coal gasification technology business and Shell's patent portfolio for liquids (residue) gasification.
Financial terms weren’t disclosed; the acquisition is expected to close in the "near future," Kallanish Energy reports.
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 support the buyer’s previously announced projects.
Gasification technologies offer a way to take lower-value feedstocks and convert them into syngas. Air Products can then provide this syngas to customers to make higher-value products.
"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 CEO of Air Products.
Ghasemi added this acquisition supports Air Products' continued 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 an alliance in liquids gasification to provide engineering, procurement and construction activities and plant operations, as well as technology licensing.
Ghasemi said Air Products will be project operating partner for the supply of industrial gases in the alliance, “leveraging Shell's technology lead in the liquids gasification area … .”