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Released February 06, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite stronger prices and volumes, Air Products and Chemicals Incorporated (NYSE:APD) (Lehigh Valley, Pennsylvania) took a hit in its recently ended quarter, with sales dipping slightly from the same period in 2022. But the industrial gas producer is optimistic about its future in the hydrogen-production market, where it has numerous big-ticket projects in the works. Industrial Info is tracking more than $13.8 billion worth of active and planned projects from Air Products globally, more than 85% of which is attributed to projects in the U.S. and Canada that have a medium-to-high probability (70% or more) of beginning construction as currently scheduled.
Click on the image at right for a graph detailing active and planned projects from Air Products globally, by project type.
Air Products' heaviest investments across the U.S. and Canada are geared toward "blue" and "green" hydrogen-production projects. "Blue" facilities are designed to produce hydrogen with natural gas using carbon-capture and storage (CCS) technology to negate the effects of emissions, while "green" produces hydrogen using electrolyzers powered by renewable energy sources. The largest of these projects, an estimated $7 billion blue hydrogen complex in Geismar, Louisiana, is set to begin construction this summer.
The Geismar facility is designed to produce about 750 million standard cubic feet per day of blue hydrogen, but recently saw its price tag jump $2.5 billion from the previously estimated $4.5 billion, which Chief Executive Officer Seifi Ghasemi attributed to inflation and tight labor availability. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more in a detailed project report and plant profile, and from Industrial Info's November 8, 2023, article - Air Products' Blue Hydrogen Project in Louisiana Moves Forward with Heftier Price Tag.
Later this summer, Air Products expects to finish construction on a $100 million plant in Casa Grande, Arizona, which is expected to produce 10 tons per day of liquefied green hydrogen for the transportation market in and around California. The company also is seeking permits for a green hydrogen plant in Massena, New York, which would produce 35 metric tons per day; its product would be sold to the mobility market in New York State, according to the company. Subscribers can learn more from detailed project reports on the Casa Grande and Massena projects.
Air Products is targeting $5 billion to $5.5 billion of capital expenditures (capex) for 2024, which Ghasemi said, in a quarterly earnings-related conference call, is "mainly going to be spent on our continuing operations in NEOM in Saudi Arabia for our green hydrogen facility, a substantial amount of it will go to our blue hydrogen facility, and other substantial amounts will be our blue hydrogen facility in Canada."
In Canada, Air Products is developing the US$970 million Net-Zero Energy Complex in Edmonton, Alberta, which will use auto-thermal reforming technology to produce blue hydrogen following its completion next year. The Edmonton project benefits from having a major customer locked in: Imperial Oil Limited (Calgary, Alberta), which signed a long-term contract to use the hydrogen as a feedstock in its US$560 million Strathcona Refinery in Edmonton. Imperial Oil's plant is designed to produce 20,000 barrels per day (BBL/d) of renewable diesel, following its completion, also slated for 2025.
NEOM Green Hydrogen Company (NGHC), a joint venture among ACWA Power (Riyadh, Saudi Arabia), Air Products and Saudi Arabia itself, is building what it expects will be the world's largest green-hydrogen-based ammonia production facility to run on renewable energy. Air Products and Thyssenkrupp (Essen, Germany) are engineering the project, which is designed to produce more than 275 million cubic feet per day of green hydrogen and 1.2 million metric tons per year of green ammonia in its first phase, with yet-to-be determined capacities in a proposed second phase. Subscribers can click here for a list of detailed reports for active and proposed NEOM projects.
Subscribers can read detailed reports on the blue hydrogen and refinery projects. For more information in the Imperial Oil project, see December 20, 2023, article - Canada's Imperial Oil Plans C$1.7 Billion in 2024 Capex.
"By the end of calendar '26, we will have our green hydrogen project in Saudi Arabia," Ghasemi said in the earnings call. "The year after that, we will have our blue hydrogen project in Louisiana. And the year after that, we will have hopefully other projects that we will announce."
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects worldwide from Air Products.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing active and planned projects from Air Products globally, by project type.Air Products' heaviest investments across the U.S. and Canada are geared toward "blue" and "green" hydrogen-production projects. "Blue" facilities are designed to produce hydrogen with natural gas using carbon-capture and storage (CCS) technology to negate the effects of emissions, while "green" produces hydrogen using electrolyzers powered by renewable energy sources. The largest of these projects, an estimated $7 billion blue hydrogen complex in Geismar, Louisiana, is set to begin construction this summer.
The Geismar facility is designed to produce about 750 million standard cubic feet per day of blue hydrogen, but recently saw its price tag jump $2.5 billion from the previously estimated $4.5 billion, which Chief Executive Officer Seifi Ghasemi attributed to inflation and tight labor availability. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more in a detailed project report and plant profile, and from Industrial Info's November 8, 2023, article - Air Products' Blue Hydrogen Project in Louisiana Moves Forward with Heftier Price Tag.
Later this summer, Air Products expects to finish construction on a $100 million plant in Casa Grande, Arizona, which is expected to produce 10 tons per day of liquefied green hydrogen for the transportation market in and around California. The company also is seeking permits for a green hydrogen plant in Massena, New York, which would produce 35 metric tons per day; its product would be sold to the mobility market in New York State, according to the company. Subscribers can learn more from detailed project reports on the Casa Grande and Massena projects.
Air Products is targeting $5 billion to $5.5 billion of capital expenditures (capex) for 2024, which Ghasemi said, in a quarterly earnings-related conference call, is "mainly going to be spent on our continuing operations in NEOM in Saudi Arabia for our green hydrogen facility, a substantial amount of it will go to our blue hydrogen facility, and other substantial amounts will be our blue hydrogen facility in Canada."
In Canada, Air Products is developing the US$970 million Net-Zero Energy Complex in Edmonton, Alberta, which will use auto-thermal reforming technology to produce blue hydrogen following its completion next year. The Edmonton project benefits from having a major customer locked in: Imperial Oil Limited (Calgary, Alberta), which signed a long-term contract to use the hydrogen as a feedstock in its US$560 million Strathcona Refinery in Edmonton. Imperial Oil's plant is designed to produce 20,000 barrels per day (BBL/d) of renewable diesel, following its completion, also slated for 2025.
NEOM Green Hydrogen Company (NGHC), a joint venture among ACWA Power (Riyadh, Saudi Arabia), Air Products and Saudi Arabia itself, is building what it expects will be the world's largest green-hydrogen-based ammonia production facility to run on renewable energy. Air Products and Thyssenkrupp (Essen, Germany) are engineering the project, which is designed to produce more than 275 million cubic feet per day of green hydrogen and 1.2 million metric tons per year of green ammonia in its first phase, with yet-to-be determined capacities in a proposed second phase. Subscribers can click here for a list of detailed reports for active and proposed NEOM projects.
Subscribers can read detailed reports on the blue hydrogen and refinery projects. For more information in the Imperial Oil project, see December 20, 2023, article - Canada's Imperial Oil Plans C$1.7 Billion in 2024 Capex.
"By the end of calendar '26, we will have our green hydrogen project in Saudi Arabia," Ghasemi said in the earnings call. "The year after that, we will have our blue hydrogen project in Louisiana. And the year after that, we will have hopefully other projects that we will announce."
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects worldwide from Air Products.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
