Hydrogen Capacity Continues to Increase in U.S., Boosted by Petroleum Refining Industry

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Researched by Industrial Info Resources (Sugar Land, Texas)--Demand for hydrogen capacity has continued to increase in recent years, thanks to the Petroleum Refining Industry. A substantial amount of new hydrogen capacity remains under development, with plans to come online over the next two years. Industrial Info is currently tracking nine hydrogen capacity expansion projects here in the United States.

Praxair (NYSE:PX), Air Products (NYSE:APD), Linde Gas North America LLC (Murray Hill, New Jersey) and Matheson Tri-Gas (Parsippany, New Jersey) are all in the midst of, or currently looking to add hydrogen capacity to the market in the form of grassroot plants or new units, totaling approximately $340 million in investments. The new capacity proposed by these companies mostly includes new plants or units being constructed adjacent to petroleum refiners who are driving this demand for use in hydrotreating units.

Air Products' new hydrogen plant in Detroit, Michigan, will support Marathon Petroleum's (NYSE:MPC) planned refinery upgrade and expansion projects. While the Air Products plant is mechanically complete, it will not be starting commercial operations until Marathon's related expansion projects are completed near the end of this year.

All nine of the capacity expansion projects are located in the Southwest, Southeast or Great Lakes region of the United States. The largest of these investments are planned in the Southwest region, with a total investment value (TIV) reaching an estimated $170 million. The Southeast follows as the second-highest investment region, with approximately $120 million in total.

Three new units are expected to begin operations by the end of 2012, bringing the total new capacity for the year to approximately 210 million standard cubic feet per day (scfd). Praxair is currently building a plant in Clarksville, Tennessee, on the site of Hemlock Semiconductor. Phase I of this new plant is expected to begin operations in 2012, with a Phase II predicted to be complete by mid-2013. During 2013, a total of nearly 340 million scfd of new hydrogen is expected to come online, with another estimated 50 million scfd or more of new capacity tentatively planned to begin operations in 2014.

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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, 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.