Published by Global Banking and Finance Review
Posted on September 13, 2025
By Andres Gonzalez
LONDON (Reuters) -Industrial gases giant Air Liquide is exploring the sale of its biomethane assets, according to three sources with knowledge of the plan, as the French group focuses on its core business of gas supply to large industries and healthcare.
The company is working with advisers at JPMorgan, according to two of the sources, on a sale which could fetch 500 million euros ($585 million) including debt depending on which assets are included, according to one of the sources.
Air Liquide declined to comment on "rumours" and JPMorgan declined to comment.
The company operates 29 biomethane production units globally, and describes itself as a major industry player in its 2024 annual report. Biomethane is derived from organic waste and used for industrial heat and power, as well as renewable fuel, particularly in maritime transport.
Biomethane production in Europe attracted investments of 28 billion euros in 2024, according to the European Biogas Association, although production growth has slowed in the quarter of 2025.
While the sector remains attractive for investors, it has lost some of the lustre it had in previous years. The International Energy Agency (IEA), in its outlook for the sector published in May, reduced its 2040 forecast for total biogas demand by 15%, citing slower-than-expected growth in emerging markets that offsets higher demand in Europe. Nonetheless, the IEA projects biomethane demand to rise fivefold by 2035.
Air Liquide is leaning towards selling its biomethane business to one investor, but it may draw offers for just some of the assets or countries, one of the sources said.
Its assets span Europe, China and the U.S., according to its website.
($1 = 0.8527 euros)
(Reporting by Andres Gonzalez, editing by Elaine Hardcastle)
