Project Supports Decarbonization Needs of Power and
Industrial Customers
LEHIGH
VALLEY, Pa. and LONDON, July 6, 2022
/PRNewswire/ -- Air Products (NYSE:APD), the world's largest
hydrogen producer, and power generator VPI, are pleased to announce
the signing of a joint development agreement to drive forward the
"Humber Hydrogen Hub" or "H3", which seeks to develop a
flagship 800MW low-carbon hydrogen production facility in
Immingham, UK. The majority of hydrogen produced would be used
to decarbonize VPI Immingham's existing power production.
The agreement was signed by Air Products Chief Operating Officer
Dr. Samir J. Serhan and VPI
Chairman Russell Hardy.
Proven Technology Supporting the Humber's Ambitions
As the UK's largest industrial cluster, the Humber has the
highest levels of industrial carbon dioxide (CO₂)
emissions. H3 would produce low-carbon hydrogen at large scale,
combining market-leading hydrogen production, carbon capture
technology and offshore CO₂ storage currently under
development for the Humber region.
The majority of the low-carbon hydrogen would serve as a
substitute fuel for VPI's existing third gas turbine power train.
Additional low-carbon hydrogen would also be made available to
other industrial users. Combined with deployment of
post-combustion capture technology on trains 1 and 2 at VPI
Immingham as part of the Humber Zero project, H3 would bring
substantial decarbonization to the VPI combined heat and power
facilities, saving over two-thirds of the emissions from its
Immingham industrial site.
The H3 project looks to capture up to two million tonnes of
CO₂ per annum and contribute to achieving Net Zero in
the wider Humber industrial region by 2040.
Crucial Development Milestones
The H3 project has submitted an application for "Strand 1"
funding as part of the Net Zero Hydrogen Fund (NZHF). Administered
by UK Research and Innovation (UKRI), the fund has the objective of
enhancing hydrogen production at scale. It will contribute towards
the UK Government's ambition of realizing 10GW of low-carbon
hydrogen production by 2030. As both companies move towards an
investment decision, this marks a significant step that could bring
hundreds of new jobs to the region during construction and
operation.
Air Products and VPI look forward to constructive engagement
with the Government on how the H3 project can become a reality.
Air Products' Chief Operating Officer Dr. Samir J. Serhan said: "We are excited to be
working with VPI, a strong proponent for decarbonization in the
Humber region.
Having a partner who is committed to decarbonizing their
existing power production operations through the use of low-carbon
hydrogen provides the secure hydrogen offtake that makes this an
excellent opportunity for us to support them and the UK
Government's broader sustainability targets."
VPI's Project Director Jonathan
Briggs said: "When Humber Zero was first developed over two
years ago, a low-carbon hydrogen solution for VPI's third train was
a critically important part of our mission to decarbonize
Immingham. By partnering with Air Products on H3, we are harnessing
the expertise of the world's largest producer of hydrogen―and the
operator of one of the largest low-carbon hydrogen facilities in
Port Arthur, Texas, USA―to ensure
that we can make a substantial contribution to the decarbonization
of the Humber region. We are confident that, when appropriate
government policy develops with respect to support of low-carbon
hydrogen, H3 would materially contribute to meeting the UK's Net
Zero goals."
"VPI is investing heavily in the energy transition and
supporting the creation of a hydrogen economy in the UK as part of
the overall drive towards achieving net zero in the coming
decades."
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.
About VPI Immingham
VPI is a UK-based power company, providing energy to the
National Grid. VPI is committed to investing more than £2
billion on supporting energy transition over the next five
years.
VPI Immingham is a Combined Heat and Power (CHP) plant near
Immingham, on the south bank of the Humber estuary in the UK. It is
one of the largest CHP plants in Europe, capable of generating 1.2GW and up to
930 tonnes of steam per hour, which is used by neighboring
refineries to produce a range of essential products.
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; VPI