Air Products has bought back two air separation units (ASUs) from a subsidiary of China’s coal mining conglomerate Shanxi Jincheng Anthracite Coal Mining Group.
The Tier One company supplied the 4,000 tonnes per day ASUs for Shanxi Jinmei Huayu Coal Chemical’s (Jinmei Huayu) Phase One energy project in Jincheng, which uses coal to produce mone million tonnes of clean fuel annually.
The two companies then actively explored further cooperation opportunities and later signed an agreement for Air Products to buy back the two ASUs for approximately $100m and provide Jinmei Huayu with long-term, safe and reliable industrial gas supply.
Since the end of June, Air Products has also been 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, as part of a long-term supply agreement.
Air Products Executive Vice-President Dr. Samir Serhan said, “We are very pleased to have successfully completed the ASU buyback and provide our safe and reliable industrial gas supply to Jinmei Huayu for its significant coal-to-clean energy project.”
“We truly appreciate our customer’s trust in Air Products’ world-class capabilities and look forward to further deepening our cooperation with one of China’s leading energy groups on coal gasification.”
Jinmei Huayu General Manager Niu Hongkuan said, “Jinmei Huayu and Air Products share a common vision for a better world, which has brought the two companies together.”
“Air Products’ experience and leading position in technology, talents, safety management and many other areas are crucial to the success of this important project, which will serve as the foundation for our broader and deeper cooperation in the future.”