Air Products Buys Back ASUs in China
US industrial gases supplier Air Products recently completed the buyback of two air separation units (ASUs) from Shanxi Jinmei Huayu Coal Chemical Co. (Jinmei Huayu), a subsidiary of China’s coal mining conglomerate Shanxi Jincheng Anthracite Coal Mining Group, for around $100 million.
The buyback was sealed in an earlier agreement that saw Air Products provide the two units with a total capacity of over 4,000 t/d for Jinmei Huayu’s Phase One energy project in Jincheng, which uses coal to produce one million tons of clean fuels annually.
As part of the further cooperation opportunities explored, Air Products at the end of June began supplying oxygen, nitrogen and other industrial gases via pipeline to Jinmei Huayu’s major coal-to-clean fuels project in Jincheng City, Shanxi Province, China under a long-term supply agreement.
The Pennsylvania-based company said the plant buyback marks an important milestone in its gasification strategy and continued support for the development of China’s clean energy industry. The two companies said the supply agreement will serve as the foundation for broader and deeper cooperation in future.
Air Products noted that it has been investing in high-quality and strategic coal gasification projects in China to support the country’s ongoing transformation and upgrade of its coal chemical industry that targets products with higher added-value and sustainability.