Chart Industries, the US LNG and industrial gases equipment-maker, said it had competed an investment in a US company called Transform Materials.
Transform Materials is a sustainable chemical technology company that uses microwave plasma to convert natural gas into acetylene and hydrogen.
“Its highly selective, cost-effective, net-carbon-negative process converts the methane in natural gas into high-value products suitable for direct use or downstream reactions,” said Chart.
Chart has purchased 5 percent of Riviera Beach, Florida-based Transform Materials’ equity for $25 million.
“We transform methane into acetylene and hydrogen, critical precursors for the synthesis of high-value chemical end products, without using traditional techniques that form carbon dioxide,” explained David Soane, Chairman of Transform Materials.
“That means we can meet important future needs of the petrochemical industry without creating harmful greenhouse gases,” added Soane.
In conjunction with the strategic investment, Chart and Transform also signed a binding commercial memorandum of understanding.
The MOU establishes the commercial collaboration and equipment supply arrangements for Chart to supply Transform projects.
Transform Materials’ process has already been adopted via a global licensing agreement with DSM Nutritional Products Ltd.
“This investment in and commercial agreement with Transform Materials is yet another step toward expanding our customers’ options in our high-growth clean-energy markets, in particular hydrogen,” stated Jill Evanko, Chart’s Chief Executive and President.
“Perhaps most impactful about Transform’s patented process technology is that there is no oxygen involved in the reaction, so therefore no carbon-dioxide is generated, the very definition of clean,” added Evanko.