DOE Pushes the Hydrogen Envelope as CB&I High Purity Production Meets Refineries Low Sulfur Gasoline Needs

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Proposals are due this month in response to the DOE's release of two solicitations at the end of July for research and development in hydrogen production, delivery, and storage technologies. Funding of $200 million will be provided over four to five years to support the presidential hydrogen fuel initiative.

The hydrogen production solicitation covers biomass, gasification and pyrolysis; photolytic processes; distributed natural gas reforming technologies; separation and purification technologies; advanced electrolysis systems; high temperature thermochemical water splitting; hydrogen production infrastructure analysis; and advanced hydrogen delivery technologies.

The second solicitation is a challenge, says the DOE, to both basic and applied scientific research communities. Its purpose is to develop hydrogen storage materials and technologies with collaboration among industry, university and national laboratory organizations.

Earlier this year, Connecticut based Business Communications Company (BCC) reported that total US hydrogen demand would grow 5.7% per year through 2007 with demand increasing from 10.96 tcf in 2002 to 14.45 tcf in 2007.

The report said that high purity transportation fuels will become mandatory, and harmful chemical emissions will be drastically cut. Hydrogen will offer petroleum refiners, specialty chemical manufacturers, and automakers the flexibility they need to meet international agreements for cleaner products.

CB&I Howe Baker (NYSE:CBI) (Woodlands, Texas) has launched a new project into this high activity, high innovation market. The company has completed the design and fabrication of a high purity hydrogen production facility for Air Liquide America who will use it to supply hydrogen for a hydrotreating unit that Shell Oil Products (LSE:SHL) (London, United Kingdom) will use at its Puget Sound refinery (Plant 1012960) in Anacortes, Washington. It will produce ultra-low sulfur gasoline under its ongoing clean fuels program.

The company has provided more than ten new facilities and major upgrades in the past twelve months associated with low sulfur, clean fuels production and the related growing industry demand for hydrogen. For the Anacortes project, it leveraged expertise and resources for modularization and prefabrication. The facility incorporates six process equipment modules and seven steam methane reformer modules. The extensive use of modularization will lower total costs, reduce the amount of on-site activities and shorten the anticipated field construction schedule from mobilization to mechanical completion to only seven months. The project is currently ahead of schedule.

The project is being executed by CB&I Howe-Baker on a complete turnkey EPC basis, including field erection. The facility will use the company's proprietary HYFORMING steam methane reforming technology to produce hydrogen and pressure swing adsorption technology to purify the hydrogen.

In this sector, BCC reported that the reduction in the sulfur content in gasoline to 30 ppm as proposed by the Environmental Protection Agency, followed by Diesel, will see refineries increasingly turn to merchant suppliers for peak shaving, production trials and plant start up procedures.