Industrialinfo.com Identifies Nearly $1 Billion in New Hydrogen Projects

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Industrialinfo.com is currently tracking 34 hydrogen unit projects in the U.S. and Canada that were reported over the last two years with planned construction starts from May of this year through the year 2007. These 34 projects represent a total investment value (TIV) of approximately $954 million and 27 different owner companies.

Click image right to view a summary of projects by plant state and proposed kick-off year and month plus a listing of the top three hydrogen projects reported this year.

Twenty-five of the thirty-four reported projects are unit additions and all but two of those are within the boundaries of a petroleum refinery. The remaining projects are expansions or retrofits of existing production units plus some grassroot construction. Refiners use hydrogen in the hydrocracking and hydrotreater units to produce more valuable by-products and gain the ability to accept different crude feedstocks based on the refineries needs. "Petroleum refiners are the number one consumer of the new hydrogen capacity as a direct result of the clean fuels programs being implemented across North America and refiners using heavier crude feedstock," commented Trey Hamblet, Chemicals Group Manager with Industrialinfo.com.

Click image left to view Hydrogen Project Spending Graph

Not surprisingly, some of the largest projects proposed are in Texas, Louisiana, and Alberta. These are states that have a high concentration of petroleum refineries and petrochemical plant populations. The construction start for most projects is between now and early 2005, as producers bring on new capacity to meet government deadlines for ultra low sulfur diesel fuels.

Ranked by TIV, the three largest projects reported this year with planned construction starts during 2003 are proposed by ConocoPhillips, Valero Refining Company, and National Cooperative Refinery Association. ConocoPhillips represents three of the projects identified in the attached table; Valero and National Cooperative have one project each.