Air Products exits from coal-to-methanol projects in Indonesia; to focus on blue/green hydrogen
Industrial gas giant Air Products and Chemicals says that it has exited from Indonesian coal gasification projects, in response to reports in the media. The company stated that it is no longer part of the US$2 billion coal-to-methanol Bengalon, East Kalimantan, Indonesia, project nor in any other coal gasification project in Indonesia.
The shift in the financial landscape for blue and green hydrogen projects that has taken place over the past year presents new investment opportunities for Air Products in energy transition projects, the company noted.
It has, thus, decided to redeploy its financial resources to energy transition, including blue and green hydrogen, across the globe.
The company adds that it remains dedicated to its core industrial gas business in Indonesia despite exiting the gasification projects.
It was in May 2020 when Air Products said it would invest in the coal-to-methanol production facility in Indonesia.
Under a long-term contract with PT. Bakrie Capital Indonesia and PT. Ithaca Resources, Air Products said it would build, own, and operate the air separation, gasification, syngas clean-up, utilities and methanol production assets to produce methanol for Bakrie and Ithaca.
The project was expected to be onstream in 2024.
Air Products is one of the largest producers of hydrogen. The company owns and operates over 100 hydrogen plants producing more than 7 million kg/day of hydrogen.