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Released June 28, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The rising demand for lower-carbon hydrogen is driving much of the activity in the U.S. industrial gases sector, with some of the biggest players trying to figure out how much investment would be justified in new production facilities. More traditional products, like nitrogen and argon, also are getting attention. Industrial Info is tracking more than $1.75 billion worth of industrial gas-production projects in the U.S. that are set to begin construction in the third quarter, all but a few of which are grassroot projects.
Click on the image at right for a graph detailing U.S. industrial gas-production projects set to kick off in the third quarter, by parent company.
One of the most closely watched corners of the energy transition is the hydrogen market, which could play a major role in the development of electric vehicles (EVs) or as a replacement for fossil fuels in internal combustion engines (ICEs). Although traditionally produced via the carbon-intensive steam reforming of natural gas, a growing number of U.S. producers are pursuing "blue hydrogen," which couples the process with carbon-capture and storage (CCS) technology to negate the effects of CO2 emissions.
Among the projects set to kick off in the coming quarter is Lone Cypress Energy Services LLC's (Tulsa, Oklahoma) $400 million blue hydrogen plant in Taft, California, which is designed to produce 65 metric tons per day of hydrogen. About 95% of the resulting CO2 is to be stored by the project manager, California Resource Corporation (NYSE:CRC) (Long Beach, California), with the remaining 5% to be released into the atmosphere.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more about the Lone Cypress plant in a detailed project report and plant profile.
A cleaner--but generally costlier--type of hydrogen is "green hydrogen," which is produced via the electrolysis of water, a process fueled by renewable energy. Although U.S.-based producers have been slower to adopt this technology when compared with blue hydrogen, at least one company says it has found a less expensive way to produce low-carbon hydrogen: SGH2 Energy Global LLC (Washington, D.C.), which is preparing to begin construction on its $100 million renewable hydrogen plant in Lancaster, California.
SGH2's plant is designed to produce more than 13 tons per day of hydrogen through the gasification of recycled mixed paper waste. The company says its project is "nearly three times larger than any other green hydrogen facility built, under construction or in development within the decade." Subscribers can learn more from a detailed project report and plant profile.
For more information on recent developments in the blue and green hydrogen markets, see March 19, 2024, article - 30 Million Hydrogen Jobs by 2050: Where Will the Skills Come From?, and June 4, 2024, article - How Extracting Hydrogen from Biomethane Can Be Carbon-Negative.
Other industrial gas developers are focused on serving regional markets. Linde plc (NYSE:LIN) (Woking, England) is preparing to begin work on an $85 million air separation and liquefaction plant in Charleston, Tennessee, which will produce liquid oxygen, nitrogen and argon for customers in Knoxville, Chattanooga, and Nashville areas of eastern Tennessee, as well as in northern Alabama and Georgia, according to the company. Subscribers can learn more from a detailed project report.
One Linde executive recently pointed to the Southeast U.S. as "a very attractive market" to continue its North American development, with other destinations under consideration. "Hydrogen demand continues to be extremely strong in the U.S. Gulf Coast," said Sanjiv Lamba, the chief executive officer of Linde, in a recent earnings-related conference call. "We're really happy to see that pickup in refiners and [petrochemical] customers are running largely at record levels, so we feel good about where that stands."
On a much smaller scale, Linde is preparing for a series of upgrades and improvements at its air-separation facilities in Ashtabula, Ohio, and Gadsden, Alabama, which involve refurbishing and, in the case of Gadsden, disassembling compressors to perform inspections and complete any necessary overhauls. Subscribers can read detailed reports on the Ashtabula and Gadsden projects.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for industrial gas-production projects in the U.S. that are set to begin construction in the third quarter.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing U.S. industrial gas-production projects set to kick off in the third quarter, by parent company.One of the most closely watched corners of the energy transition is the hydrogen market, which could play a major role in the development of electric vehicles (EVs) or as a replacement for fossil fuels in internal combustion engines (ICEs). Although traditionally produced via the carbon-intensive steam reforming of natural gas, a growing number of U.S. producers are pursuing "blue hydrogen," which couples the process with carbon-capture and storage (CCS) technology to negate the effects of CO2 emissions.
Among the projects set to kick off in the coming quarter is Lone Cypress Energy Services LLC's (Tulsa, Oklahoma) $400 million blue hydrogen plant in Taft, California, which is designed to produce 65 metric tons per day of hydrogen. About 95% of the resulting CO2 is to be stored by the project manager, California Resource Corporation (NYSE:CRC) (Long Beach, California), with the remaining 5% to be released into the atmosphere.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more about the Lone Cypress plant in a detailed project report and plant profile.
A cleaner--but generally costlier--type of hydrogen is "green hydrogen," which is produced via the electrolysis of water, a process fueled by renewable energy. Although U.S.-based producers have been slower to adopt this technology when compared with blue hydrogen, at least one company says it has found a less expensive way to produce low-carbon hydrogen: SGH2 Energy Global LLC (Washington, D.C.), which is preparing to begin construction on its $100 million renewable hydrogen plant in Lancaster, California.
SGH2's plant is designed to produce more than 13 tons per day of hydrogen through the gasification of recycled mixed paper waste. The company says its project is "nearly three times larger than any other green hydrogen facility built, under construction or in development within the decade." Subscribers can learn more from a detailed project report and plant profile.
For more information on recent developments in the blue and green hydrogen markets, see March 19, 2024, article - 30 Million Hydrogen Jobs by 2050: Where Will the Skills Come From?, and June 4, 2024, article - How Extracting Hydrogen from Biomethane Can Be Carbon-Negative.
Other industrial gas developers are focused on serving regional markets. Linde plc (NYSE:LIN) (Woking, England) is preparing to begin work on an $85 million air separation and liquefaction plant in Charleston, Tennessee, which will produce liquid oxygen, nitrogen and argon for customers in Knoxville, Chattanooga, and Nashville areas of eastern Tennessee, as well as in northern Alabama and Georgia, according to the company. Subscribers can learn more from a detailed project report.
One Linde executive recently pointed to the Southeast U.S. as "a very attractive market" to continue its North American development, with other destinations under consideration. "Hydrogen demand continues to be extremely strong in the U.S. Gulf Coast," said Sanjiv Lamba, the chief executive officer of Linde, in a recent earnings-related conference call. "We're really happy to see that pickup in refiners and [petrochemical] customers are running largely at record levels, so we feel good about where that stands."
On a much smaller scale, Linde is preparing for a series of upgrades and improvements at its air-separation facilities in Ashtabula, Ohio, and Gadsden, Alabama, which involve refurbishing and, in the case of Gadsden, disassembling compressors to perform inspections and complete any necessary overhauls. Subscribers can read detailed reports on the Ashtabula and Gadsden projects.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for industrial gas-production projects in the U.S. that are set to begin construction in the third quarter.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
