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Released October 15, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Air Products (NYSE:APD) (Lehigh Valley, Pennsylvania) said Thursday it plans to build, own and operate a $4.5 billion blue hydrogen complex in Ascension Parish, Louisiana. The project would convert natural gas into more than 750 million standard cubic feet per day of hydrogen. It would earn the "blue" moniker by capturing 95% of the associated carbon dioxide (CO2) and pumping it into the ground for permanent sequestration, as part of an agreement with the state of Louisiana.
Industrial Info is tracking more than $14 billion worth of capital projects by Air Products. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.
Part of the hydrogen produced would be compressed and supplied to customers via the company's hydrogen pipeline along the Gulf Coast. The rest of the hydrogen would be used to make ammonia, to be shipped around the world and converted back to hydrogen for various markets, Air Products said. Components of the project include an ammonia plant, an oxygen plant, compressors and a dock to export ammonium.
Representing Air Products' largest-ever U.S. investment, the project is expected to be operational in 2026, the company said. Speaking to industry analysts during a conference call, Air Products Chief Executive Officer Seifi Ghasemi said the company had been working to develop the project for the past four years, "so this is not an intent of what we want to do...it is a final investment decision."
About 95% of the CO2 generated at the complex would be captured, compressed and piped to sequestration sites up to 35 miles to the east of the production facility. More than five million metric tons per year of CO2 would be sequestered about a mile underground.
Click on the image at right for an Air Products schematic showing the blue hydrogen and carbon sequestration flow for the planned project.
Blue hydrogen is produced using natural gas, oil, coal or other hydrocarbons, with the associated CO2 from the process being captured and sequestered. In Edmonton, Alberta, Air Products and its subsidiary, Air Products Canada Limited, are working with the Canadian and Alberta governments on plans to build a blue hydrogen complex for C$1.3 billion (US$1 billion), with completion scheduled for 2024. For more information, see June 14, 2021, article - Canada's Alberta Province is Feeling Blue -- for Hydrogen.
Air Products already produces gray hydrogen, which also is derived from fossil fuels, but with the CO2 dioxide emitted into the atmosphere.
The company also plans to become a major producer of green hydrogen, which is made when energy from solar, wind, hydropower or nuclear is used to power electrolysis units, which split water into its hydrogen and oxygen components. In Tabuk, Saudi Arabia, Air Products, in partnership with NEOM Energy and ACWA Power International (Riyadh, Saudi Arabia), plans to build a $5 billion power-to-gas hydrogen plant at the kingdom's planned NEOM mega city, to convert 4 gigawatts (GW) of solar and wind energy into green hydrogen.
Construction of the NEOM project is planned to start in 2023, with completion in 2026. For related information, see August 10, 2021, article - Air Products Expands Capital Deployment Target to $30 Billion by End-2027.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Industrial Info is tracking more than $14 billion worth of capital projects by Air Products. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.
Part of the hydrogen produced would be compressed and supplied to customers via the company's hydrogen pipeline along the Gulf Coast. The rest of the hydrogen would be used to make ammonia, to be shipped around the world and converted back to hydrogen for various markets, Air Products said. Components of the project include an ammonia plant, an oxygen plant, compressors and a dock to export ammonium.
Representing Air Products' largest-ever U.S. investment, the project is expected to be operational in 2026, the company said. Speaking to industry analysts during a conference call, Air Products Chief Executive Officer Seifi Ghasemi said the company had been working to develop the project for the past four years, "so this is not an intent of what we want to do...it is a final investment decision."
About 95% of the CO2 generated at the complex would be captured, compressed and piped to sequestration sites up to 35 miles to the east of the production facility. More than five million metric tons per year of CO2 would be sequestered about a mile underground.
Blue hydrogen is produced using natural gas, oil, coal or other hydrocarbons, with the associated CO2 from the process being captured and sequestered. In Edmonton, Alberta, Air Products and its subsidiary, Air Products Canada Limited, are working with the Canadian and Alberta governments on plans to build a blue hydrogen complex for C$1.3 billion (US$1 billion), with completion scheduled for 2024. For more information, see June 14, 2021, article - Canada's Alberta Province is Feeling Blue -- for Hydrogen.
Air Products already produces gray hydrogen, which also is derived from fossil fuels, but with the CO2 dioxide emitted into the atmosphere.
The company also plans to become a major producer of green hydrogen, which is made when energy from solar, wind, hydropower or nuclear is used to power electrolysis units, which split water into its hydrogen and oxygen components. In Tabuk, Saudi Arabia, Air Products, in partnership with NEOM Energy and ACWA Power International (Riyadh, Saudi Arabia), plans to build a $5 billion power-to-gas hydrogen plant at the kingdom's planned NEOM mega city, to convert 4 gigawatts (GW) of solar and wind energy into green hydrogen.
Construction of the NEOM project is planned to start in 2023, with completion in 2026. For related information, see August 10, 2021, article - Air Products Expands Capital Deployment Target to $30 Billion by End-2027.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
