Air Products says it will buy Royal Dutch Shell plc's (Shell's) coal gasification technology business as well as Shell's patent portfolio for liquids (residue) gasification. Financial terms were not disclosed. The acquisition is expected to close in the coming months.

Allentown, Penn.-based Air Products says it 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 further support projects such as Lu'An in Changzhi, Shanxi Province, China, and future projects.

In December, Air Products agreed with Shanxi Jincheng Anthracite Coal Mining Group to supply industrial gases to Phase One of Shanxi Jinmei Huayu Coal Chemical Co Ltd.’s coal-to-clean-fuels project in Jincheng City, Shanxi Province.

Gasification technologies offer a way to take varied lower-value feedstocks and convert them into syngas. Air Products says it can provide this syngas to customers to make higher-value products.

Shell's technology is in operation at more than 20 coal gasification plants. Its technology is available in two configurations:

• A syngas cooler line-up is intended for large projects and IGCC power generation.
• A bottom water-quench line-up uses a simplified syngas cooler configuration that reduces capital costs and increases feedstock flexibility.

The two companies also formed an alliance in liquids gasification to provide a range of products, including engineering, procurement and construction activities and plant operations, as well as technology licensing.

In April 2015, Air Products was awarded a contract by Saudi Aramco under a joint venture (JV) of Air Products and ACWA Holding to build, own and operate one of the world’s largest industrial gas complexes to supply 75,000 metric tons per day (20,000 oxygen and 55,000 nitrogen) to Saudi Aramco’s refinery being built in Jazan, Saudi Arabia, for 20 years.