Industrial plants often outlive the business decisions that made them necessary, and the challenge is not always whether the equipment still works, but whether another company can put it to work.
That was the situation at ADM's oilseed processing facility in Canada. Changes to food regulations eliminated the need for hydrogen production used in manufacturing partially hydrogenated oils, and the site's 55,000 SCFH (1,500 Nm³/hr) hydrogen plant was permanently shut down. Although it no longer served ADM's operations, the Glitsch-designed steam methane reforming (SMR) plant remained a well-preserved production asset.
After shutdown, the plant was mothballed under a nitrogen blanket to help prevent internal corrosion. Most of the equipment was skid-mounted, making future dismantlement and relocation practical and shifting the challenge from preservation to finding another manufacturer that could use the plant.
Why Phoenix Purchased the Plant
Phoenix recognized that the plant's greatest value remained in continued operation. Purchasing an entire hydrogen plant before a buyer has been identified requires confidence that another operator exists with a genuine need for the production capacity, and that confidence comes from understanding the global market for complete process plants rather than simply the value of individual equipment.
Phoenix purchased the plant outright and marketed it internationally as a complete hydrogen production facility rather than dismantling it for individual equipment.
Project Overview
Phoenix recognized that the plant's greatest value remained in continued operation. Purchasing an entire hydrogen plant before a buyer has been identified requires confidence that another operator exists with a genuine need for the production capacity, and that confidence comes from understanding the global market for complete process plants rather than simply the value of individual equipment.
Phoenix purchased the plant outright and marketed it internationally as a complete hydrogen production facility rather than dismantling it for individual equipment.
Finding the Right Buyer
Finding a buyer for an entire hydrogen plant is fundamentally different from selling individual pieces of equipment because the pool of potential buyers is much smaller. The buyer must have a process that requires hydrogen, demand for additional production, and expansion plans that align with the facility being offered.
Phoenix marketed the plant globally and ultimately identified a chemical manufacturer in Bangladesh expanding hydrogen capacity for hydrogen peroxide production. Acquiring the existing plant gave the buyer additional hydrogen production capacity without the time and capital required to build a comparable new steam methane reforming facility, while ADM recovered value from an idle asset that no longer supported its operations.
Preparing the Plant for Relocation
Following the sale, Phoenix managed dismantlement and preparation for international shipment. The work included match-marking equipment and piping, dismantling the facility, crating, export packing, and coordinating shipment from Canada to Bangladesh.
Because much of the plant had originally been constructed on skids, the equipment could be removed and transported while preserving the plant's configuration for reinstallation. All dismantlement, packing, and shipping activities were completed in approximately two months.
Project Outcome
The transaction created value for every party involved. ADM converted an idle production asset into recovered capital after the hydrogen plant no longer supported its operations. The buyer expanded hydrogen production without the time and capital required to build a comparable new facility. Phoenix's understanding of the global market for complete process plants made that outcome possible by connecting a seller with surplus capacity to a buyer ready to put the plant back into service.
Industrial plants do not always reach the end of their useful life when they stop serving their original owner. Sometimes the value simply shifts to a different operator. Identifying that opportunity, and executing the transfer successfully, is what makes complete plant redeployment possible.
Project Highlights
- Seller: ADM
- Original Location: Canada
- Plant: Steam Methane Reforming Hydrogen Plant
- Capacity: 1,500 Nm³/hr (55,000 SCFH)
- Hydrogen Purity: 99.99%
- Process: Steam Methane Reforming with PSA
- Year Built: 1995
- Condition After Shutdown: Mothballed Under Nitrogen
- Buyer: Chemical Manufacturer
- Destination: Bangladesh
- End Use: Hydrogen Production for Hydrogen Peroxide Manufacturing
- Dismantlement, Packing & Shipment: Approximately 2 Months
- Phoenix Scope: Plant Purchase, Global Marketing, Dismantlement, Match-Marking, Export Packing and Shipment
- Project Value: Approximately $3 Million, Including Plant Sale, Dismantlement and Shipment to Bangladesh
Industrial plants do not always reach the end of their useful life when they stop serving their original owner. Sometimes the value simply shifts to a different operator, and identifying that opportunity while successfully executing the transfer is what makes complete plant redeployment possible.