LONDON, Sept 12 (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)