LEHIGH VALLEY, Penn.,
June 9, 2021 /PRNewswire/ -- Air
Products (NYSE: APD), the world leader in hydrogen production, and
its subsidiary Air Products Canada Ltd., in conjunction with the
Government of Canada and the
Province of Alberta, today announced a multi-billion dollar plan to
build a landmark new net-zero hydrogen energy complex that will
make Edmonton, Alberta the centre
of western Canada's hydrogen
economy and set the stage for Air Products to operate the most
competitive and lowest-carbon-intensity hydrogen network in the
world.
![Air Products' World-Scale Net-Zero Hydrogen Energy Complex Air Products' World-Scale Net-Zero Hydrogen Energy Complex](https://mma.prnewswire.com/media/1529246/Air_Products_Alberta_Plant_Graphic.jpg)
Canada's clean energy
diversification strategy and regulatory framework make clear that
hydrogen is a key enabler for carbon neutrality by 2050. Aligned
with that vision, Air Products began work in 2018 on the core of
this world-scale energy complex in Edmonton, which will begin with a
transformative $1.3 billion (CAD)
net-zero hydrogen production and liquefaction facility expected
onstream in 2024. This project has been approved by Air Products'
Board of Directors, subject to final completion of the agreements
contemplated in signed Memorandums of Understanding between Air
Products and Canadian authorities, and with appropriate permit
approvals. This development is consistent with Air Products' growth
strategy of executing global megaprojects that enable a transition
to a cleaner, more sustainable energy future.
The project relies on an innovative combination of
well-established technologies to jump-start an ambitious transition
to carbon neutrality. It will take advantage of Canada's abundant and low-cost natural
resources, extensive infrastructure, highly skilled workforce, and
innovative spirit to be a model for other jurisdictions around the
globe.
"We sincerely appreciate the support of the Government of
Canada, the Government of Alberta,
Invest Alberta, the Mayor of Edmonton and Edmonton Global. We are proud to
expand our presence in this dynamic region, where we have found a
vision for decarbonization that mirrors our core values," said
Seifi Ghasemi, Air Products'
Chairman, President and Chief Executive Officer. "Sustainability is
our pathway to growth and central to Air Products' business every
day around the world. By being a first mover and investing in this
innovative landmark project, we are paving the way for hydrogen
from Edmonton to meet industrial
and transportation needs throughout western Canada. Our highly integrated project will be
a model for net-zero atmospheric gas, hydrogen and power production
consistent with our announced growth platforms."
"As the global leader in hydrogen production, Air Products is
focused on providing competitive solutions for our customers. The
combination of multiple facilities, state of the art technologies,
our existing 55-kilometer Alberta Heartland Hydrogen pipeline, our
project execution expertise, and our record of reliable operations
will set the benchmark for competitive hydrogen to support growth
in Alberta for many years to
come," said Dr. Samir J.
Serhan, Air Products' Chief Operating Officer. "Air
Products has decades of hydrogen fueling experience around the
world and we are excited and ready for the developing market in
Canada."
"Our well-established Edmonton
team is proud of the outstanding safety and reliability record of
our existing operations," said Rachel
Smith, Air Products Canada Vice President. "We fully
intend to earn that same reputation with our new facility
construction and operations while also creating well-paying jobs in
the Edmonton region. By design,
the new complex will utilize Alberta's natural gas resources to
produce net-zero hydrogen, reducing the environmental footprint of
the refining sector and facilitating future growth in the hydrogen
economy in Edmonton and the
Alberta Industrial Heartland."
Hon. Jason Kenney, Premier
of Alberta, said, "Alberta is a leader in emission reduction and
responsible energy development. Alberta's combination of
competitive taxes, abundant natural resources, and innovation are
attracting new investment by world-leading companies, like Air
Products, to expand their operations right here in our province.
This also demonstrates early success for Invest Alberta, with its
mandate to promote our province as an international investment
destination for new and exciting large-scale opportunities that
build on Alberta's experience and expertise."
Hon. François-Philippe
Champagne, Canadian Minister of Innovation, Science and
Industry, said, "As consumers and investors demand lower-emitting
products, we will continue to support Canadians and businesses who
are ambitious about seizing these opportunities, creating good
jobs, and helping Canada achieve
net-zero by 2050. We are always ready to roll up our sleeves with
provincial, municipal, and business partners to reach these goals.
Today's Air Products announcement demonstrates that our
government's policies are attracting investments in Canada's energy sector and ensuring that
Alberta's workers and ingenuity play a key part in Canada's economic recovery."
Hon. Seamus O'Regan Jr.,
Minister of Natural Resources, said, "Hydrogen's moment has come.
It's the low-carbon fuel that gets us to net zero. This opportunity
will create thousands of jobs and use the skills and expertise of
workers in Alberta to lead
Canada to the forefront of the
global hydrogen market. Working with Alberta and Air Products
Canada, we are building a low-emissions energy future that leaves
no one behind."
Don Iveson, Mayor of
Edmonton, said, "This project is a
key milestone for Edmonton's low
carbon future. It will harness the energy expertise of the
Edmonton metro region to produce
liquid hydrogen that could be used to fuel city buses and other
transportation applications across western Canada, and ultimately serve lucrative export
markets as well. The 2,500 construction jobs, substantial local tax
revenue, and spin-off benefits for decades to come are also welcome
in the COVID recovery context. Along with our neighbours in the
Edmonton Region Hydrogen Hub, we've leaned into Northern Alberta's competitive advantages to
drive growth in the hydrogen economy. With that parallel focus on
regional prosperity and energy transition, the team at Edmonton
Global have engaged closely with Air Products for many months,
leading to today's win for our community."
David Knight Legg, CEO of
Invest Alberta Corporation, said, "The future of net-zero is in the
hands of engineers, entrepreneurs, investors, and companies like
Air Products. We're proud to welcome Air Products' expansion of its
Alberta operations and look forward to working with Seifi's
globally renowned team as they create jobs, investment and
innovative solutions for net-zero hydrogen production and carbon
capture and storage in Alberta."
Air Products will deploy advanced hydrogen technology and
innovative design to deliver net-zero emissions. The new facility
will capture over 95 percent of the carbon dioxide (CO2)
from the feedstock natural gas and store it safely back
underground. Hydrogen-fueled electricity will offset the remaining
five percent of emissions. The clean energy complex will help
refining and petrochemical customers served by the Air Products
Heartland Hydrogen Pipeline to reduce their carbon intensity. The
complex also marks a first in the wider use of hydrogen in
Alberta, enabling the production
of liquid hydrogen to be an emissions-free fuel in the
transportation sector, and to generate clean electricity. This is
expected to have a positive impact in lowering Alberta's carbon
emissions.
Air Products, already Canada's
leading hydrogen supplier, is also considering further investments
in both existing and new hydrogen facilities in Alberta and across Canada, helping customers improve their
sustainability performance while bolstering the hydrogen economy
and Canada's energy transition.
The Edmonton project site was
strategically selected to permit expansion of the energy complex,
including replication of net-zero hydrogen production assets to
meet growing demand. Air Products' existing Heartland Hydrogen
Pipeline network was designed for growth and has the capability to
more than triple current volumes.
Air Products' hydrogen business in Alberta is envisioned to reach over 1,500
tonnes of hydrogen production per day and achieve greater than
three million tonnes per year of CO2 capture.
Initially, Air Products will build, own, and operate a new net-zero
hydrogen complex consisting of a:
- World-scale Auto-Thermal Reformer (ATR) hydrogen production
facility, featuring Haldor Topsoe technology, to be built on a
large project site in Edmonton
that has room for expansion;
- Carbon capture operations capable of achieving 95 percent
removal of CO2 from the complex. The CO2 will
be permanently sequestered by leveraging the Wolf Carbon Solutions
wholly-owned and operated Alberta Carbon
Trunk Line;
- Power generation facility fueled 100 percent by hydrogen,
including NovaLT16 turbines provided by Baker Hughes, to produce
clean electricity for the entire facility and export to the grid,
offsetting the five percent remaining CO2 to achieve the
net-zero hydrogen facility design;
- 30 tonnes-per-day hydrogen liquefaction facility designed by
Air Products, the first of such liquid hydrogen operations around
the world to provide clean hydrogen to the growing industrial and
mobility hydrogen markets across Western
Canada;
- World-scale air separation facility, designed by Air Products
to support the ATR operation and to produce clean liquid oxygen and
nitrogen for the merchant industrial gas market; and
- Connection to Air Products' existing Alberta Heartland Hydrogen
Pipeline network for enhanced reliability and phased
decarbonization of the entire network.
The hydrogen liquefaction facility will play a critical role in
the developing hydrogen economy across Western Canada. Hydrogen will help to meet
society's need for sustainable transportation, especially for heavy
duty vehicles where hydrogen excels compared to other technologies.
Hydrogen is seen as having a substantial technological advantage
over battery electric vehicles in heavy-duty applications due to
those vehicles' duty-cycles, especially in Canada's extreme climate conditions. Hydrogen
as a transportation fuel most closely mirrors the traditional
consumer transportation fuel experience, and Air Products has been
a pioneer in this area for decades. The company's technologies are
used in over 1.5 million refuelings annually across 20 countries,
with Air Products having been involved in over 250 projects.
As the world's largest hydrogen producer, Air Products has
experience across the full value chain for hydrogen and is driving
sustainable growth by building, owning and operating the world's
largest production, gasification, carbon capture, transportation
and fueling projects. With over 60 years of global hydrogen
experience operating in over 50 countries, Air Products has the
proven capability and know-how to make hydrogen through all
available production methods and to distribute this increasingly
important emission-free fuel safely, reliably, and
economically.
Air Products Canada currently operates three hydrogen production
facilities in Alberta, and a
55-kilometer hydrogen pipeline in the Alberta Industrial Heartland.
The company also operates a hydrogen production facility, a
30-kilometer pipeline network and a liquefaction facility in
Sarnia, Ontario. The company's
excellent safety record includes operating over 1,100-kilometers of
hydrogen pipelines worldwide with no incidents.
For more detailed background information about the project:
www.airproducts.com/bluebutbetter.
Media Event
The Government of Canada and
Air Products will host a livestream event at 9:30 a.m. MDT/11:30
a.m. USET on June 9, 2021.
- Members of the media are invited to contact ISED Media
Relations (ic.mediarelations-mediasrelations.ic@canada.ca) to
register and receive a link to the Zoom virtual event. Media are
asked to join the call at 11:15 a.m.
(USET).
- The general public can access the event at:
-
- Innovation, Science and Economic Development Canada's (ISED)
Facebook page
- Government of Alberta YouTube channel
Air Products Investor Call
Air Products will host an
investor teleconference at 11:00 a.m.
MDT/1:00 p.m. USET on
June 9, 2021. The teleconference will
be open to the public and the media in listen-only mode by
telephone and Internet broadcast.
Live teleconference: 323-994-2093
Passcode: 3062363
Internet broadcast/slides: Available on the Event
Details page on Air Products' Investor Relations website.
Telephone replay: 888-203-1112 (domestic) or
719-457-0820 (international)
Passcode: 3062363
Available from 5:00 p.m. ET on
June 9, 2021 through 5:00 p.m. ET on June 16,
2021.
Internet replay: Available on the Event
Details page on Air Products' Investor Relations website.
About Air Products
Air
Products (NYSE: APD) is a world-leading industrial gases
company in operation for over 80 years. Focused on serving energy,
environment and emerging markets, the Company provides essential
industrial gases, related equipment and applications expertise to
customers in dozens of industries, including refining, chemical,
metals, electronics, manufacturing, and food and beverage. Air
Products is also the global leader in the supply of liquefied
natural gas process technology and equipment. The Company develops,
engineers, builds, owns and operates some of the world's largest
industrial gas projects including: gasification projects that
sustainably convert abundant natural resources into syngas for the
production of high-value power, fuels and chemicals; carbon capture
projects; and world-scale carbon-free hydrogen projects supporting
global transportation and the energy transition.
The Company had fiscal 2020 sales of $8.9
billion from operations in 50 countries and has a current
market capitalization of about $65
billion. More than 19,000 passionate, talented and committed
employees from diverse backgrounds are driven by Air Products'
higher purpose to create innovative solutions that benefit the
environment, enhance sustainability and address the challenges
facing customers, communities, and the world. For more information,
visit airproducts.com or follow us
on LinkedIn, Twitter, Facebook or Instagram.
Cautionary Note Regarding Forward-Looking Statements: This
release contains "forward-looking statements" within the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on management's
expectations and assumptions as of the date of this release and are
not guarantees of future performance. While forward-looking
statements are made in good faith and based on assumptions,
expectations and projections that management believes are
reasonable based on currently available information, actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors, including risk factors
described in our Annual Report on Form 10-K for the fiscal year
ended September 30, 2020.
Except as required by law, we disclaim any obligation or
undertaking to update or revise any forward-looking statements
contained herein to reflect any change in the assumptions, beliefs,
or expectations or any change in events, conditions, or
circumstances upon which any such forward-looking statements are
based.
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