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Researched by Industrial Info Resources (Sugar Land, Texas)--Having committed or deployed nearly $18 billion in capital investments since 2018, industrial gas major Air Products (NYSE:APD) (Lehigh Valley, Pennsylvania) now is setting its sights on $30 billion in capital deployment for a 10-year period through fiscal year 2027, Chief Executive Officer Seifi Ghasemi said on Monday.
Industrial Info is tracking $8.45 billion worth of projects by Air Products, with more than 86% of that amount earmarked for investment in the Asia world region. North America is home to more than $1 billion in project development, or nearly 12% of the total.
Click on the image at right for a graph showing Air Products' project activity by world region.
Air Products expects capital expenditures of about $2.5 billion for its full-year fiscal 2021, which ends September 30.
Speaking at the company's fiscal third-quarter earnings conference call with industry analysts, Ghasemi said Air Products has added about 2,000 employees to its payroll to accomplish its project goals. The deployment of $30 billion in capital would add about $3 billion per year in earnings before interest, taxes, depreciation and amortization, he added.
In the U.S., one of the projects under construction is a $500 million brownfield steam methane reformer and air separation unit in Texas City, Texas, for the Gulf Coast Ammonia Production Complex. The steam methane reformer will produce hydrogen for Gulf Coast Ammonia LLC's (Miami Beach, Florida) world-scale anhydrous ammonia plant, and will connect to Air Products' hydrogen pipeline system, while the air separation unit will be used in the production of nitrogen. The pipeline segment of the project is expected to be completed later this year, and the remainder of the project is expected to be in operation in first-quarter 2023. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the project report.
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 "net zero" emissions hydrogen complex for C$1.3 billion (U.S.$1 billion), with completion in 2024. Subscribers can click here for the project report. For more information, see June 14, 2021, article - Canada's Alberta Province is Feeling Blue -- for Hydrogen.
In Tabuk, Saudi Arabia, Air Products, in partnership with NEOM Energy and ACWA Power International (Riyadh, Saudi Arabia), has announced plans to build a $5 billion power-to-gas plant at the kingdom's planned NEOM mega-city, to convert 4 gigawatts (GW) of solar and wind energy into hydrogen. Air Products said it will use the hydrogen to produce ammonia, which would be shipped around the world, then to be dissociated to produce hydrogen as a transportation fuel.
Construction of the NEOM project is planned to start in 2023, with completion in 2026. For more information, see Industrial Info's project report.
Also in Saudi Arabia, Air Products and its partners are working on a $12 billion acquisition of the gasification, power and industrial gas project assets at the Jazan Economic City from Saudi Aramco (Dhahran, Saudi Arabia). The assets will supply 75,000 metric tons per day (20,000 tons oxygen and 55,000 tons of nitrogen) to Saudi Aramco's refinery at Jazan. The transaction is expected to close by the end of September, Ghasemi said.
Industrial Info is tracking 10 active projects that are tied to Saudi Aramco's 400,000-barrel-per-day Jazan Refinery. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can click here for a list of detailed reports.
Air Products reported $533.7 million in net income for its just-ended fiscal third quarter, compared with $446.5 million in fiscal third-quarter 2020.
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 $8.45 billion worth of projects by Air Products, with more than 86% of that amount earmarked for investment in the Asia world region. North America is home to more than $1 billion in project development, or nearly 12% of the total.
Air Products expects capital expenditures of about $2.5 billion for its full-year fiscal 2021, which ends September 30.
Speaking at the company's fiscal third-quarter earnings conference call with industry analysts, Ghasemi said Air Products has added about 2,000 employees to its payroll to accomplish its project goals. The deployment of $30 billion in capital would add about $3 billion per year in earnings before interest, taxes, depreciation and amortization, he added.
In the U.S., one of the projects under construction is a $500 million brownfield steam methane reformer and air separation unit in Texas City, Texas, for the Gulf Coast Ammonia Production Complex. The steam methane reformer will produce hydrogen for Gulf Coast Ammonia LLC's (Miami Beach, Florida) world-scale anhydrous ammonia plant, and will connect to Air Products' hydrogen pipeline system, while the air separation unit will be used in the production of nitrogen. The pipeline segment of the project is expected to be completed later this year, and the remainder of the project is expected to be in operation in first-quarter 2023. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the project report.
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 "net zero" emissions hydrogen complex for C$1.3 billion (U.S.$1 billion), with completion in 2024. Subscribers can click here for the project report. For more information, see June 14, 2021, article - Canada's Alberta Province is Feeling Blue -- for Hydrogen.
In Tabuk, Saudi Arabia, Air Products, in partnership with NEOM Energy and ACWA Power International (Riyadh, Saudi Arabia), has announced plans to build a $5 billion power-to-gas plant at the kingdom's planned NEOM mega-city, to convert 4 gigawatts (GW) of solar and wind energy into hydrogen. Air Products said it will use the hydrogen to produce ammonia, which would be shipped around the world, then to be dissociated to produce hydrogen as a transportation fuel.
Construction of the NEOM project is planned to start in 2023, with completion in 2026. For more information, see Industrial Info's project report.
Also in Saudi Arabia, Air Products and its partners are working on a $12 billion acquisition of the gasification, power and industrial gas project assets at the Jazan Economic City from Saudi Aramco (Dhahran, Saudi Arabia). The assets will supply 75,000 metric tons per day (20,000 tons oxygen and 55,000 tons of nitrogen) to Saudi Aramco's refinery at Jazan. The transaction is expected to close by the end of September, Ghasemi said.
Industrial Info is tracking 10 active projects that are tied to Saudi Aramco's 400,000-barrel-per-day Jazan Refinery. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can click here for a list of detailed reports.
Air Products reported $533.7 million in net income for its just-ended fiscal third quarter, compared with $446.5 million in fiscal third-quarter 2020.
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.
