Project Overview
Air Products had procured a significant amount of process equipment for a planned sustainable aviation fuel (SAF) project in Southern California before the project was ultimately cancelled. Much of the equipment had already been manufactured, but it remained never used and never installed.
In 2025, Phoenix Equipment purchased the majority of the surplus equipment outright. The approximately $5 million project involved Phoenix’s acquisition, logistics, and ongoing remarketing of the surplus assets. Air Products recovered cash value from the surplus equipment while freeing valuable storage space.
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The Challenge
The cancelled project left Air Products with a large inventory of newly manufactured process equipment that was no longer needed. Selling the equipment individually would have required Air Products to continue storing and managing a large surplus equipment package while waiting for individual buyers.
Phoenix provided a single outright purchase, allowing Air Products to recover cash value and transfer the ongoing remarketing responsibility to Phoenix.
Equipment Acquisition & Remarketing
The acquired equipment included never-used, never-installed process equipment from the cancelled SAF project, including:
- Stainless steel reactors and pressure vessels with capacities up to 28,000 gallons
- Stainless steel fin-fan heat exchangers with surface areas up to 86,000 sq. ft.
- Shell-and-tube heat exchangers in a range of sizes
- Compressors
- Pumps
- Electric motors
- Additional related process equipment
Phoenix began remarketing the equipment individually to other industrial buyers. Many assets have already been sold, while the remaining equipment continues to be marketed for redeployment.
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Taking On the Long-Term Disposition Risk
Rather than requiring Air Products to manage individual equipment sales over time, Phoenix assumed ownership of the surplus package and responsibility for remarketing it.
That structure separated Air Products’ project closeout from the equipment resale timeline. Air Products received cash value and cleared storage space, while Phoenix took on the ongoing responsibility for marketing and selling the equipment over time.
Project Highlights
Recovering Value From a Cancelled Capital Project
Phoenix’s outright purchase gave Air Products a direct way to recover cash value from the surplus equipment while clearing storage space. Phoenix then assumed the longer equipment-sale timeline, remarketing the unused assets individually for deployment into other industrial projects.