Air Products Finalizes LNG Process Technology, Equipment Sale to Honeywell

Air Products completed the sale of its liquefied natural gas (LNG) process technology and equipment business to Honeywell for $1.81 billion in cash. Initially announced in July 2024, transactional closing conditions have been met and regulatory approvals received. The divestiture of the LNG process technology and equipment business is strategic, allowing Air Products to focus on its two-pillar growth plan: growing its core industrial gases and related equipment businesses and to deliver clean hydrogen at scale.

“I want to thank our former LNG colleagues for their contributions, hard work and expertise, which have built a strong foundation that Honeywell can now take forward,” said Seifi Ghasemi, Chairman, President and Chief Executive Officer of Air Products. “Air Products remains focused on creating shareholder value by executing our growth strategy in industrial gases and clean hydrogen to drive the energy transition and decarbonize.”

Coil-wound heat exchanger; Image Credits: Air Products

Following the closed sale, related assets, manufacturing capability, and personnel associated with the LNG process technology and equipment business were successfully transferred to Honeywell. This includes approximately 475 employees and the coil-wound heat exchanger manufacturing facility in Port Manatee, FL.

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In July 2024, Air Products announced that it will build, own, and operate two new air separation units (ASU) at facilities in Conyers, GA, and Reidsville, NC. These units, scheduled for operation in 2026, will replace older ASUs and provide additional capacity onsite. The projects will advance the operational flexibility of Air Products’ industrial gas business.

Industrial gas products manufactured at Conyers and Reidsville will include liquid oxygen, liquid nitrogen, and liquid argon to supply the region’s merchant markets. The facilities will serve customer markets such as chemicals, food, metals processing and fabrication, primary materials, and electronics.

In June, TotalEnergies and Air Products entered a 15-year agreement, starting in 2030, for the annual delivery of 70,000 tons of green hydrogen to Europe. Air Products will leverage its global hydrogen supply network to remove approximately 700,000 annual tons of CO₂ from TotalEnergies’ northern European refineries—the deal follows the company’s call for tenders to supply 500,000 tons of green hydrogen per year for the decarbonization project.

The supply will assist TotalEnergies’ goal of reducing net greenhouse gas emissions—Scope 1 and 2—from its oil and gas operations by 40% by 2030. The company plans to cut the carbon footprint of producing, converting, and supplying energy to customers by using green and low-carbon hydrogen at European refineries. This decarbonization initiative, with assistance from additional hydrogen suppliers, may reduce TotalEnergies’ CO₂ emissions by approximately five million tons per year.

Finally, also in June, Air Products Membrane Solutions invested over $70 million in its Manufacturing and Logistics Center in Maryland Heights, MO. The expanded manufacturing facility is expected to be in production by the end of 2025 and will add 30 new positions. The M&L expansion follows a $10 million investment in 2023 to raise production capacity at the current facility. The investment was driven by the increasing demand for biogas and hydrogen recovery applications, as well as customer requirements for nitrogen usage in the aerospace industry and cleaner fuels in the marine industry.