Air Liquide Considers Sale of Biomethane Assets Amid Strategic Shift

Air Liquide, a leader in the industrial gases sector, is reportedly evaluating the potential sale of its biomethane assets as part of a strategic pivot towards its core operations in gas supply for large industries and healthcare. According to sources familiar with the matter, the French company is collaborating with advisors from JPMorgan, with estimates suggesting the sale could yield approximately €500 million, inclusive of debt, depending on the specific assets involved.

Currently, Air Liquide boasts a portfolio that includes 29 biomethane production facilities worldwide, establishing itself as a significant player in this niche market. Biomethane, derived from organic waste, serves various applications including industrial heat, power generation, and renewable fuel, particularly in maritime transport. Despite its promise, the biomethane sector has witnessed a deceleration in growth, with the European Biogas Association reporting a decline in investment momentum in early 2025.

The International Energy Agency (IEA) has also tempered its expectations for the industry's future. In its latest outlook, the IEA downgraded its 2040 demand forecast for total biogas by 15%, attributing this adjustment to slower-than-anticipated growth in emerging markets, which mitigates heightened demand observed in Europe. Nonetheless, the IEA anticipates that biomethane demand will experience a fivefold increase by 2035.

While Air Liquide is leaning towards divesting its biomethane operations to a single investor, the company may also consider offers for specific assets or regions. The company's extensive biomethane infrastructure spans Europe, China, and the United States, underscoring its significant footprint in this evolving sector. As the market adapts to changing dynamics, Air Liquide’s strategic choices will undoubtedly shape its future trajectory.