Air Products, Lu’An form $1.3 bn JV coal-to-syngas project

Air Products, Lu’An to form $1.3 bn JV for coal-to-syngas project

6:38 AM, 12th September 2017
Air Products, Lu’An to form $1.3 bn JV for coal-to-syngas project
Air Products chairman, president and CEO Seifi Ghasemi (front, right) and Lu’An Clean Energy Company chairman Li Jinping exchange signed agreement for $1.3 billion joint venture for coal-to-syngas project in China’s Shanxi province.

LEHIGH VALLEY, US: Air Products and Chemicals Inc (APD) has signed an agreement to form a $1.3 billion joint venture (JV) with Lu’An Clean Energy Company. This will significantly expand Air Products’ scope of supply serving Lu’An Mining (Group) Co, Ltd’s syngas-to-liquids production in Changzhi City, Shanxi Province, China.

Air Products has already invested $300 million to build, own and operate four large air separation units (ASUs) to supply the Changzhi City site. Under the new agreement, Air Products will contribute the ASUs and invest a further $500 million for a 60 percent ownership in the new JV.

With this majority position, Air Products will fully consolidate the JV financial results. Lu’An will contribute the gasification and syngas cleanup system, will receive $500 million of cash and will have a 40 percent ownership in the new JV.

The new joint venture, to be called Air Products Lu’an (Changzhi) Co Ltd will own and operate the ASUs and gasification and syngas clean-up system. The JV will receive coal, steam and power from Lu’An and will supply syngas to Lu’An under a long-term, onsite contract. Closing is expected as soon as possible, pending initial operational start-up and government and regulatory approvals.

“We are delighted to have Lu’An, a leading clean energy company in China, as our joint venture partner. The creation of this world-class JV is perfectly in line with our stated strategy of deploying our significant cash to grow by acquiring existing assets and expanding our scope of supply to include syngas,” said Seifi Ghasemi, chairman, president and CEO of Air Products.

“Extending our strong partnership/relationship with Air Products through this new joint venture enables us to take advantage of world-leading project management and operational expertise to deliver syngas for this landmark energy project,” said Li Jinping, chairman of Lu’An.

© Worldofchemicals News



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