LEHIGH
VALLEY, Pa. and ROTTERDAM,
Netherlands, June 28,
2022 /PRNewswire/ -- Air Products (NYSE:APD) and
Gunvor Petroleum Rotterdam (GPR), a wholly-owned subsidiary of
Gunvor Group (Gunvor), have signed a joint development agreement
for an import terminal in Rotterdam. The agreement responds to the
accelerating demand for green energy sources to meet climate
objectives and the need to diversify energy sources. The import
terminal is expected to provide green hydrogen to the Netherlands in 2026.
Green Hydrogen Economy
Green hydrogen is key to the
energy transition. It has significant potential to decarbonize
hard-to-abate sectors, such as heavy-duty transport and industry. A
substantial amount of renewable energy is needed to produce green
hydrogen. It is unlikely that Europe will be able to produce these amounts
locally, making large-scale, green hydrogen imports essential for
reaching targets set under the European Union's (EU) "Fit for 55"
legislative package and REPowerEU. With this project, the Netherlands would make a leading
contribution to EU energy transition goals.
Key Development Milestones
The signing of the
agreement is an important step towards an investment decision that
will be taken as the companies gain confidence in the regulatory
framework, permitting process, and funding support. Certification
of the green hydrogen is needed to ensure that the imported green
ammonia and resulting green hydrogen is recognized and counted
towards the EU renewable energy targets. For funding support, this
project seeks to be recognized as an 'Important Project of Common
European Interest' (IPCEI). Air Products looks forward to
continuing engagement with the relevant stakeholders to establish
the broader support available to the project.
Gateway to Northwest
Europe
The Gunvor site in Europoort Rotterdam is one
of several European locations envisaged by Air Products for the
development of a green hydrogen import terminal. It offers
strategic access for receiving green ammonia from large-scale green
hydrogen production locations operated by Air Products and its
partners from projects around the world. The green ammonia will be
converted to hydrogen and distributed to markets within
Europe, including the Netherlands, Germany, and Belgium. Air Products and Gunvor both have a
proven track record for reliability and safety and are committed to
delivering world-class performance in personal and process
safety.
Benefits to the Dutch Economy
Independent analysis
from CE Delft has shown the project will ultimately deliver
EUR 260-425 million of indirect
economic benefits, culminating in thousands of new jobs over the
coming years. The savings in carbon dioxide (CO₂) emissions to the
transport sector, combined with the benefit of reduction in other
harmful emissions, would create an overall environmental benefit
valued at over EUR 100 million by
2030.
Ivo Bols, President Europe and
Africa, said, "Air Products is
pleased to take a next step towards a green hydrogen import
terminal in Rotterdam, together
with our partner Gunvor. Hydrogen import is essential to diversify
our energy resources and meet climate objectives. Air Products, the
largest hydrogen producer in the world, is committed to contribute
to both ambitions by accelerating the development of the European
green hydrogen economy via first-mover projects like these. We are
looking forward to further cooperation with Gunvor to make
Rotterdam ready for green hydrogen
imports."
"Gunvor is pleased to be partnering with Air Products through
Nyera, our investment vehicle dedicated to supporting the Energy
Transition, in order to leverage strategic locations such as our
Rotterdam facility in a way that
advances the development of sustainable and renewable energy
initiatives," said Shahb Richyal, Global Head of Portfolio at
Gunvor.
Allard Castelein, CEO Port of
Rotterdam: "We are very supportive
of Air Products' and Gunvor's plans, which are a great example of
using a brownfield location to set up a new import terminal for
green ammonia in the port of Rotterdam. Both companies have been active in
the energy sector for a long time and are responding to society's
demand to reduce greenhouse gas emissions as well as to increase
Europe's energy independence.
Green ammonia is not only a hydrogen carrier and a feedstock for
the chemical industry, but it's also an important renewable fuel
for the shipping sector. First-mover projects like this will make
Rotterdam Europe's foremost Hydrogen Hub."
About Gunvor Group
Gunvor Group is one of the world's largest independent
commodities trading houses by turnover, creating logistics
solutions that safely and efficiently move physical energy and bulk
materials from where they are sourced and stored to where they are
demanded most. Gunvor has strategic investments in industrial
infrastructure—refineries, pipelines, storage, and terminals—that
complement core trading activities and generate sustainable value
across the global supply chain for customers. In 2020, Gunvor
reported turnover of US $50 billion
on volumes of 191 million MT. Approximately 50% of the company's
trading consists of "transitional" commodities, including biofuels,
natural gas and LNG. For more information, visit
GunvorGroup.com.
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 low- and zero-carbon hydrogen projects
supporting global transportation and the energy transition.
The Company had fiscal 2021 sales of $10.3 billion from operations in over 50
countries and has a current market capitalization of about
$55 billion. More than 20,000
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
www.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, 2021.
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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SOURCE Air Products; Gunvor Group