Air Liquide Weighs A €500m Energy Rebalance

Gas group considers divestment as it redirects capital toward hydrogen

13 Sep 2025

Air Liquide is considering the sale of its biomethane assets in a deal that could reach €500mn, marking a significant shift in Europe’s renewable gas sector as the French group focuses on hydrogen and core industrial activities.

The potential divestment, first reported by Reuters in September 2025, reflects the company’s plan to streamline its portfolio and increase investment in hydrogen technologies and traditional gas businesses. Air Liquide’s biomethane operations include production sites connected to national gas grids in several European markets. People familiar with the matter said energy groups such as Engie or TotalEnergies may explore bids, though no formal offers have been disclosed.

Analysts view the move as evidence of sector consolidation rather than a strategic retreat. Biomethane, once a niche waste-to-energy product, has become a central part of Europe’s renewable gas market and has attracted both infrastructure funds and large utilities. “This is not a retreat, it’s a repositioning,” said an analyst at Energy Voice Europe. “Air Liquide is freeing up capital for hydrogen innovation while opening space for new investors to scale biomethane.”

The possible sale comes as the EU pushes to expand biomethane output under its REPowerEU plan, which targets annual production of 35bn cubic metres by 2030. The policy drive has encouraged joint ventures, acquisitions and financing agreements as companies seek to secure assets with proven grid access and stable feedstock supply.

Buyers are likely to weigh remaining operational challenges, including securing long-term feedstock and meeting strict grid-quality rules. Rising interest from infrastructure investors may, however, accelerate investment in digital tracking systems for carbon reporting and operational efficiency.

If completed, the transaction would rank among the larger biomethane deals in Europe. For Air Liquide, it would mark a recalibration toward technologies that the group expects to scale in the coming decade, while signalling continued momentum for the region’s renewable gas industry.