Air Products of Trexlertown said it has signed an agreement to acquire the gasification business of General Electric Co.
According to a release, the company said the move will allow Air Products to expand its syngas solutions and grow its presence in building, owning and operating gasification projects around the world.
Syngas is a mixture of carbon monoxide and hydrogen produced mostly from coal that is used in making synthetic chemicals.
The business being acquired includes GE’s share of a 50/50 joint venture with China Shenhua Coal to Liquid and Chemical Company Ltd., a subsidiary of China Energy Group. The joint venture, formed in 2011, provides technologies for gasification projects in China.
The acquisition also includes over 1,000 patents relating to GE’s gasification technology, which has been deployed at over 90 sites, with over 240 gasifiers, and represents over 36,000 thermal megawatts of syngas production.
The acquisition also includes approximately 50 total employees.
Financial terms of the transaction were not disclosed. The transaction is pending regulatory approvals.
“Acquiring GE’s gasification technology and business would complement our other recently completed gasification technology acquisition and alliance formation. Together, they would give Air Products a broad range of product and service offerings and solutions to provide syngas for chemicals, fuels, power or refining. Together, the transactions would allow us to further extend our onsite industrial gas production model to include syngas supply, and enable cross-selling opportunities for our other technologies and product offerings,” said Seifi Ghasemi, chairman, president and chief executive officer at Air Products in a statement.