Air Products and Lu’An Clean Energy to form $1.3B JV for coal-to-syngas project
11 September 2017
Air Products will form a $1.3-billion coal-to-syngas joint venture (JV) with Lu’An Clean Energy Company, which 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% 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 clean-up system, will receive $500 million of cash and will have a 40% 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.
The agreement is subject to government and regulatory approval.
Would that reduce the total (net) pollution footprint? If so, by how much?
Is it another way to use more coal?
Posted by: HarveyD | 11 September 2017 at 11:56 AM
Harvey:
Yes; but, hopefully to make fertilized and not fuel.
Posted by: Lad | 11 September 2017 at 12:44 PM