Chart Industries has acquired LA Turbine (LAT) for $80m in cash, which Chart CEO Jill Evanko says will lead to ’significantly shorter and guaranteed delivery times’ of hydrogen and helium liquefaction turboexpanders.
California-based LA Turbine provides turboexpander design, engineering, manufacturing, assembly and testing process for new and aftermarket equipment. Expanders are used in hydrogen and helium liquefaction; carbon capture and energy storage; industrial gas; natural gas processing; small-scale LNG plants; propane dehydrogenation (PDH) plants and heavy hydrocarbon removal process for LNG plants.
“We now can offer a more comprehensive ‘one stop shop’ solution and provide more options for our customers in these applications,” Chart said in a statement.
“LAT’s capabilities are a natural fit and deliver a competitive point of differentiation for Chart. There is a very unique expander required for hydrogen and helium liquefaction which is difficult to obtain in the market due to a limited number of companies like LAT that are capable of designing and producing it. Further, within the last three years, the other qualified suppliers have been acquired by companies that only use their hydrogen and helium turboexpanders for in-house dedicated purposes.”
This acquisition follows recent additions to Chart’s portfolio, including Cryo Technologies’ helium and hydrogen liquefaction capabilities which will also utilise LA Turbine’s equipment. Both businesses have ’very active commercial order pipelines and there are multiple requests for hydrogen liquefaction and processing as well as a variety of energy projects,’ according to Chart.
“It is an exciting time for Chart and LA Turbine as we now work together to bring our customers expanded solutions across multiple molecules, including nearly all types of energy sources and multiple industrial gas applications,” Jill Evanko, Chart’s CEO and President, said.
“LA Turbine is one of the only turboexpander engineering and manufacturing companies that can design and produce very specialised expanders; one of the longest lead time items in the hydrogen and helium liquefaction supply chain. With this capability in house, we are further differentiated in liquefaction – not just from decades of experience but also from world class efficiency and now, significantly shorter and guaranteed delivery times.”
Looking ahead to 2022, LA Turbine is expected to contribute between $40 and $50m of revenue according to Chart.