Honeywell To Push Energy Transition Via Acquisition of Compressor Controls Corporation

May 10, 2023 by Seth Price

Honeywell has announced plans to expand its controls portfolio through the acquisition of Compressor Controls Corporation, accessing inroads to the petrochemical industry and speeding up carbon capture research.

Honeywell announced that they will be purchasing Compressor Controls Corporation, formerly owned by INDICOR, LLC. The all-cash transaction of $670 million is expected to close in the latter half of 2023, pending legal and regulatory approvals.


Honeywell's acquisition of Compressor Controls Corporation will further advance its holdings in compressors and control technologies. Image used courtesy of Adobe Stock


Compressor Controls Corporation

Compressor Controls Corporation specializes in turbomachinery, such as compressors and control software platforms, as well as technical services related to this equipment. They primarily serve the midstream and downstream petroleum and natural gas industries, as well as other energy sector markets. Since the mid-1970s, they have deployed and maintained numerous control systems, with over two billion hours of combined control service.

Compressor Controls Corporation is based out of Des Moines, IA, and has 280 employees who will become part of the Honeywell team.


The Role of Compressors in Industry

At first glance, compressors are for compressing things, typically gasses. Most industrial sites have a compressed air line, often referred to as the “fourth utility,” powering mechanical equipment throughout the plant. Pneumatic systems all rely on quality compressed air to drive air tools, motors, and even some logic control systems in places where electricity is inconvenient or unavailable.

Compressors are also used to compress gaseous fuels, such as natural gas, propane, and others. By compressing these gasses, the same amount of fuel takes up significantly less volume, making it easier to transport by truck, train, or ship. One of the challenges with this compression is managing the phase change—compressed gasses can be converted to a liquid under the right conditions. This is often desirable but must be tightly controlled. Compressed fuels are one important market for Compressor Controls Corporation.


Honda Civic has been converted to run on compressed natural gas (CNG), some view as cleaner fuel alternative to gasoline or diesel

This Honda Civic has been converted to run on compressed natural gas (CNG). Some view CNG as a cleaner fuel alternative to gasoline or diesel fuel. Image used courtesy of Wikimedia Commons


However, it’s not only the compression of gasses themselves that is of benefit. It is also what is possible with compressed gasses. Virtually all refrigeration, HVAC, and climate control applications have a compressor for compressing the coolant. Monitoring the performance of this coolant and looking for leaks, vibrations, thermal anomalies, and other problems are essential to keeping cooling systems running.

Compressors are also used in numerous manufacturing processes. The injection of compressed gasses into chemical processing vessels can aid stirring, remove impurities, and prevent fires or explosions. It can backfill food, beverage, and medicine containers to increase shelf life. Many plastic parts are “blow molded” using compressed gasses. There is no end to the need for compressed gasses in manufacturing.


Honeywell's Acquisition To Drive Energy Transition

Honeywell is already a leader in industrial controls and automation systems. Its acquisition of Compressor Controls Corporation further advances its holdings in compressors and control technologies. Given the unique challenges of compressor control, they will be adding almost 50 years of compressor expertise to their team. Compressor Controls Corporation also has over 14,000 installed systems in its portfolio, further expanding Honeywell’s inroads into the petrochemical industry and speeding up some of its carbon capture research and development.

The deal will be finalized once the regulatory and legal requirements have been met.