Air Products Acquires Remaining 50% Stake in Gasification Technology Joint Venture from China Shenhua Coal to Liquid and Chemical

Transaction Brings Air Products' Ownership to 100%, Furthering its Gasification Growth Strategy and Position to Leverage its Complete Technology Portfolio

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Air Products

Apr 14, 2021, 14:00 ET

LEHIGH VALLEY, Pa. and SHANGHAI, April 14, 2021 /PRNewswire/ -- Air Products (NYSE: APD) today announced it has completed the acquisition of the remaining 50 percent equity stake in its gasification technology joint venture (JV) with China Shenhua Coal to Liquid and Chemical Co. Ltd., a subsidiary of China Energy Group. Financial terms of the transaction are not being disclosed.

Air Products acquired its initial 50 percent equity stake in the JV as part of its acquisition of General Electric Company's ("GE") gasification business from GE Power in 2019.

This transaction further strengthens Air Products' broader gasification technology portfolio and integrates technical and engineering resources in China.

"Our latest investment is another step to support our gasification growth strategy that addresses the world's energy and environmental challenges. We continue to execute several megaprojects in China and around the world. The acquisition further strengthens our position to leverage our complete gasification technology portfolio to serve our customers," said Seifi Ghasemi, chairman, president and chief executive officer at Air Products.

Air Products continues its leadership in gasification projects around the world. Last year, Air Products announced a US$2 billion coal-to-methanol project located in Indonesia. The company is also executing a number of world-scale gasification projects including the Jiutai and Debang projects in China, as well as the Jazan project in Saudi Arabia.

Air Products has been successfully building, owning, and operating facilities under the "Sale of Gas" model for many decades. The company's portfolio includes more than 40 years of gasification experience, extensive capabilities, industry-leading technologies, and operational expertise. Air Products Syngas Solutions™ offers complete turnkey gasification complexes to convert a wide range of lower-value hydrocarbon feedstocks into synthesis gas for making higher value products and power.

About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including: gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals; carbon capture projects; and world-scale carbon-free hydrogen projects supporting global transportation and the energy transition.

The Company had fiscal 2020 sales of $8.9 billion from operations in 50 countries and has a current market capitalization of over $60 billion. More than 19,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world. For more information, visit airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.

NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the company's Form 10K for its fiscal year ended September 30, 2020.

SOURCE Air Products