Air Liquide Explores Sale of Biomethane Operations to Focus on Core Business
Air Liquide is reportedly considering the sale of its biomethane activities as it aims to concentrate on its core business, supplying industrial and healthcare sectors with technical gases. The potential sale, advised by JPMorgan, could yield approximately €500 million. The company operates 29 biomethane production facilities globally and recognizes its significant role in the sector. Despite recent investment in biomethane production in Europe, growth has slowed, and the International Energy Agency has revised its global biogas demand forecast downward.
Theia Market Signal Identification - AI AssistedAir Liquide, a prominent player in the industrial gases sector, is reportedly exploring the sale of its biomethane operations to sharpen its focus on core activities that serve major industrial clients and the healthcare sector. According to sources familiar with the situation, the company is collaborating with advisors from JPMorgan on this potential transaction, which could generate around €500 million, including debt, depending on the assets sold.
The firm currently operates 29 biomethane production facilities across Europe, China, and the United States, and touts its status as a significant contributor to the industry in its 2024 business report. Biomethane, derived from organic waste, functions as both an industrial fuel and a renewable energy source, particularly for maritime transport.
Despite a robust investment of €28 billion in biomethane production across Europe in 2024, growth within the sector has begun to falter, especially in the first quarter of 2025. While the sector remains appealing to investors, its luster has dimmed compared to previous years.
The International Energy Agency (IEA) recently downgraded its projections for global biogas demand through 2040 by 15%, citing sluggish growth in emerging markets that partially offsets rising demand in Europe. Nevertheless, the IEA anticipates that the need for biomethane will quintuple by 2035.
Insiders indicate that Air Liquide may lean towards divesting its entire biomethane business to a single investor, although offers for individual assets or specific regions may also be considered.
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