Air Products is selling its LNG process technology and equipment business to Honeywell for $1.81bn as the major refocuses efforts on clean hydrogen and its core industrial gas business.
© Air Products
The deal, representing around 13 times Air Products’ 2024 estimated EBITDA, will allow the industrial gas major to increase focus on its strategy of growing its industrial gas segment and to be a “first mover” in clean hydrogen.
With a 475 employee-strong LNG business workforce, Air Products’ President and CEO, Seifi Ghasemi, said the segment was at its strongest point and the workforce would be in “good hands” to advance under Honeywell.
It comes as Air Products develops some $15bn of energy transition projects, including the 2.2GW NEOM green hydrogen plant, a $4bn green hydrogen facility in Texas, and a carbon capture project at its grey hydrogen plant in Rotterdam.
Despite the firm’s ambitions to take the lead as a clean hydrogen first mover, a company executive told H2 View in May, there was “no glory” in doing so if there are not fast followers.
Ivo Bols, President, Europe and Africa at Air Products, said, “Even the best first mover cannot create a reliable, competitive market,” urging more players to make large-scale commitments to hydrogen.
He told H2 View, despite the firm being willing to take investment risks on clean hydrogen, it had contributed what it could “responsibly.”
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