Praxair Signs Hydrogen Supply Deal - Analyst Blog
July 08 2011 - 7:00AM
Zacks
Praxair Inc. (PX)
recently signed
a multi-year contract to provide high-purity hydrogen to Hemlock
Semiconductor, L.L.C. The financial terms of the transaction were
not disclosed.
Hemlock Semiconductor
provides high-purity polycrystalline silicon and chlorosilanes for
semiconductor and solar ingot/wafer manufacturers.
Under the contract, the
company will construct and operate an on-site hydrogen generating
facility and also undertake to supply liquid hydrogen to Hemlock
Semiconductor’s $1.2 billion polysilicon manufacturing facility.
This facility is expected to start in 2012.
The company has also agreed
to supply hydrogen to Motiva Enterprises LLC’s refinery in Norco,
St. Charles Parish, Louisiana.
With the aim to expand
Praxair’s hydrogen pipeline complex at Louisiana, the company has
planned to connect it with a new hydrogen plant under construction
in St. Charles Parish.
It is anticipated that the
expansion of the hydrogen pipeline will be completed by the second
quarter of 2012, while the construction work of the plant would be
accomplished by the fourth quarter of 2012.
Demand for hydrogen is
expected to be strong, primarily driven by its progressive
application for refining purposes. Over the period 2010-2015,
refining capacity is expected to grow by 2% in US/Europe, 15% in
India, 20% in China, 24% in the Middle East, and 25% in Brazil.
Praxair has an expectation of a 20% volume growth for hydrogen per
annum going forward.
Praxair is engaged in the
production and distribution of industrial gases, primarily
catering to demands in North America, South America, Europe, and
Asia. Prime competitors of the company include Air Products
& Chemicals Inc. (APD) and L'Air Liquide SA.
AIR PRODS & CHE (APD): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
Zacks Investment Research
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From Sep 2023 to Sep 2024