LyondellBasell's Houston Refinery Could Become Home to Hydrogen Hub

Researched by Industrial Info Resources (Sugar Land, Texas)--Executives with LyondellBasell Industries NV (NYSE:LYB) (Rotterdam, Netherlands) last week voiced the possibility of developing a hydrogen hub at the company's refinery in Houston, Texas.

Speaking at the company's Capital Markets Day investor presentation, Executive Vice President of Olefins & Polyolefins Ken Lane said the refinery is a "preferred location" for a hydrogen facility.

Lane noted that a consortium of companies has been evaluating sites for a hydrogen project on the Gulf Coast. That consortium, which includes LyondellBasell, Air Liquide S.A. (Paris, France), Chevron Corporation (NYSE:CVX) (San Ramon, California), and Uniper SE (Dusseldorf, Germany), announced its intent in October to collaborate on a joint study to evaluate and potentially advance the development of a hydrogen and ammonia production facility.

"Specifically, the consortium will assess the potential for producing hydrogen, using natural gas with CCS (carbon capture and storage) and renewable hydrogen via electrolysis, to supply end-use markets, including the ammonia, petrochemicals, power, and mobility markets," the group said in October.

"We've aligned with our partners in that (consortium) that the preferred location is going to be the Houston refinery," Lane said during the Lyondell investor event. He added no decision has been made yet, "but we are excited about the opportunities that this site has for the future."

At present, LyondellBasell plans to close the 268,000-barrel-per-day (BBL/d) refinery by the end of this year. It is located on a 700-acre site at the city limits of Houston and Pasadena. LyondellBasell previously said it was considering selling the refinery.

During the investor event, Lane said LyondellBasell's Circular & Low Carbon Solutions business is focusing on two flagship hubs: "The first one is in Cologne, Germany, the second one is in Houston Texas. Both of these have produced circular and renewable products, and we are expanding capacity in both of these hubs. With the closing of the refinery we've got the opportunity to also grow and expand our circular and low-carbon business."

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