Air Products to Build Two Hydrogen Plants In Louisiana

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Researched by Industrial Info Resources (Sugar Land, Texas)-- Air Products and Chemicals Incorporated (NYSE:APD) (Allentown, Pennsylvania) is developing two new hydrogen plants in Louisiana. Air Products announced it will supply approximately 120 million standard cubic feet per day of hydrogen to Marathon Petroleum Company (Findlay, Ohio) and will construct a plant next to Marathon's refinery in Garyville. Hydrogen will be distributed through the Louisiana Hydrogen Pipeline Network, not only for refinery operations, but for other customers as well. The increased production will provide Marathon with enough hydrogen to support a planned crude oil refining expansion from 245,000 barrels-per-day (BBL/d) to 425,000 BBL/d.

Air Products will also supply steam through a high-reliability steam methane reformer on the Marathon site. The unit, which adds reliability, is connected to the largest hydrogen pipeline network in Louisiana. Steam methane reforming is the most widely utilized technology for producing hydrogen and synthesis gas from natural gas feedstocks. Air Products and Technip Incorporated (OTC:TKPPY) (Claremont, California) have an alliance to engineer and construct hydrogen plants. Technip provides the design and construction for the steam reformer while Air Products provides the gas-separation technology. Construction on the $100 million project began in May with start-up scheduled for September 2010.

Air Products has also selected Baton Rouge to build a second hydrogen plant. This $250 million facility will supply an undetermined amount of hydrogen to an adjacent refinery, owned by ExxonMobil Corporation (NYSE:XOM) (Irving, Texas). Technip has also been selected to provide the design and construction services. Construction is scheduled to begin in the fall of 2009. Estimated completion for the plant will be in the spring of 2010.

In addition, Air Products Canada has plans to invest an estimated $50 million at its Nanticoke, Ontario, site to increase capacity by replacing its former air-separation unit with a new 1,200-ton-per-day unit and a 500-ton-per-day high-efficiency liquefier facility. Nanticoke will supply Lake Erie Steel G.P. Incorporated and E.S. Fox Limited. Construction for the new air-separation unit is scheduled for the third quarter of this year. The plant is scheduled to be online by the end of 2009.

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