Air Products, Lu'An Clean Energy To Form $1.3 Bln JV - Quick Facts

(RTTNews) - Air Products (APD) announced it has signed an agreement to form a $1.3 billion joint venture with Lu'An Clean Energy Co. The new joint venture, to be called Air Products Lu'an (Changzhi) Co., Ltd., will own and operate the air separation units (ASUs) and gasification and syngas clean-up system.

The new joint venture 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.

Under the new agreement, Air Products will contribute ASUs and invest a further $500 million for a 60 percent ownership in the new JV. Air Products has already invested $300 million to build, own and operate four large ASUs to supply the Changzhi City site.

Lu'An will contribute the gasification and syngas clean-up system, will receive $500 million of cash and will have a 40 percent ownership in the new JV. The JV will receive coal, steam and power from Lu'An and will supply syngas to Lu'An under a long-term, onsite contract.