A live media event will take place at
10:30 a.m. MDT/12:30 p.m. USET See details below.
LEHIGH
VALLEY, Pa., Nov. 8, 2022
/PRNewswire/ -- At a news conference today in Edmonton, Alberta, Canada, the Canadian
federal and provincial governments announced approximately
$475 million (CAD) in project funding
for Air Products' multi-billion-dollar landmark net-zero hydrogen
energy complex in Alberta. The
facility, already being executed, will make Edmonton, Alberta the centre of western
Canada's hydrogen economy and set
the stage for Air Products to operate one of the most competitive
and lowest-carbon-intensity hydrogen networks in the world.
At the event held at the Northern Alberta Institute of
Technology, Air Products' Chairman, President and Chief Executive
Officer Seifi Ghasemi, Minister of
Innovation, Science and Industry Canada the Honourable
François-Philippe Champagne,
Alberta Minister of Energy the
Honourable Peter Guthrie, and several other esteemed federal,
provincial and City of Edmonton
officials gathered to make the joint announcement.
Under separate agreements, Air Products will receive:
- $300 million (CAD) from the
Strategic Innovation Fund (SIF), the Government of
Canada's program designed to spur
innovation for a better Canada by
providing funding for large projects and national innovation
ecosystems. Air Products' project funding specifically comes from
the Net-Zero Accelerator Program targeting industrial
decarbonization in support of Canada's 2030 greenhouse gas emissions
reduction targets and its 2050 net zero emissions goal, among other
objectives.
- Over $160 million (CAD) from the
Alberta Petrochemicals Incentive Program (APIP), part of Alberta's
Recovery Plan to bring multi-billion dollar investments to
industrial projects throughout Alberta, add value to natural gas
production in the province, and help to strengthen, diversify and
bring new life into the province's economy and create new
opportunities and jobs for Albertans.
- $15 million (CAD), which was
previously announced, from Emissions Reduction Alberta's
Shovel-Ready Challenge, which aims to help deliver on the
province's environmental and economic goals by investing in clean
technology that cuts greenhouse gases, attracts investment and
creates jobs in Alberta.
"From the beginning, Air Products has truly and sincerely
appreciated the partnership of the Government of Canada and the Government of Alberta, as well
as the continued support of the City of
Edmonton, in welcoming this visionary clean energy complex
to Alberta. We are pleased to recognize the successful completion
of support agreements that have allowed us to make additional
engineering enhancements to reach an even cleaner world-class
design. This facility will be a first mover in helping to
decarbonize mobility and industrial markets, further demonstrated
by an already announced and substantial off-take supply contract.
Today's announcement represents visionary leadership and a
commitment to move humanity forward in the energy transition. It
shows what is possible when effective collaboration and
governmental support align to drive the energy transition," said
Ghasemi.
The Honourable François-Philippe
Champagne, Minister of Innovation, Science and Industry
said, "We need to be bold and seize the moment, and that's exactly
why we're investing in Air Products. We are prioritizing a strong
and sustainable economy, helping create well-paying jobs, and
ensuring a cleaner future. Hydrogen is one of the key elements for
our path to net zero, and that's why we're making these important
investments in Canada's energy
sector. We're also ready to build on this ambition by supporting
and working with high-emitting sectors in decarbonizing, creating
more jobs across the country and growing for generations to
come."
The Honourable Danielle Smith, Premier of Alberta said, "Alberta
is Canada's hydrogen powerhouse
and projects like this will create jobs, diversify the economy, and
build additional clean energy capacity for use across Western Canada. With such a huge attachment in
the hydrogen market, our government's Alberta Petrochemicals
Incentive Program is making us the most attractive jurisdiction for
companies looking to invest in hydrogen. Alberta's economy will
continue to charge ahead full steam with an investment climate that
encourages businesses to grow and fuel job growth."
The Honourable Johnathan Wilkinson, Minister of Natural
Resources said, "Unlocking the potential of hydrogen is an
essential part of the federal government's plan for a
sustainable economic future – not just for the domestic
opportunities for emissions reductions but also for its potential
as an export opportunity: to provide clean energy to countries
around the globe."
The Honourable Randy Boissonnault, Minister of Tourism and
Associate Minister of Finance // Member of Parliament for Edmonton
Centre said, "Today's announcement is an historic investment in the
net-zero economy of the future, and in the Edmonton region. This investment will further
position our city as a leading hydrogen production hub for
Canada and North America and is part of our government's
plan to ensure prosperity for generations to come. This investment
is more proof that we are building an economy that works for
everyone."
The Honourable Pete Guthrie, Minister of Energy, Government of
Alberta said, "Alberta's hydrogen sector is growing rapidly, with
more and more hydrogen-powered projects coming online over the
coming years. With more than $161
million in funding for Air Products' clean hydrogen
facility, we are creating jobs, growing the energy sector and
bringing clean hydrogen to customers across Western Canada."
Edmonton Mayor Amarjeet Sohi said, "Today's announcement
brings Edmonton one step closer on
the energy transition journey towards becoming a carbon-neutral
city. Investing in an Edmonton-based clean hydrogen facility will
help with our city's post-pandemic economic recovery efforts and
will allow Canada to advance clean
energy in the global hydrogen market. I am appreciative that both
our federal and provincial government partners and Air Products are
prioritizing Edmonton's climate
and hydrogen goals, and I look forward to future collaborations
that will advance this work."
Today's announcement marks the milestone of the successful
completion of Memorandum of Understanding agreements referenced in
June 2021 when Air Products, 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, initially announced the multi-billion-dollar plan to
build the landmark net-zero hydrogen energy complex.
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 development in 2018 on the
core of this world-scale energy complex in Edmonton, which will begin with a
transformative net-zero hydrogen production and liquefaction
facility.
Since the initial facility announcement, Air Products has
proceeded with engineering, procurement, and construction
preparatory site work, as well as marketing the clean hydrogen to
be produced. In September 2022, Air
Products announced a customer agreement for approximately 50
percent of the low-carbon hydrogen output from the 165 million
standard cubic feet per day hydrogen production complex. This
off-take agreement also saw Air Products increase its facility
investment from $1.3 billion (CAD) to
$1.6 billion (CAD), as well as
including beneficial engineering enhancements to the production
process, further substantially reducing greenhouse gases at the
net-zero facility.
The Alberta project relies on an innovative combination of
well-established technologies to jump-start an ambitious transition
to carbon neutrality and is consistent with Air Products' growth
strategy of executing global megaprojects that enable a transition
to a cleaner, more sustainable energy future. 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.
"This new complex is just the beginning for this site. The
showcase facility will have it all – a world scale auto-thermal
reformer, carbon capture operations achieving 95 percent removal, a
power generation facility fueled 100 percent by hydrogen, a 35
tonnes-per-day hydrogen liquefaction facility, a world-scale air
separation facility producing clean liquid oxygen and nitrogen, and
connection to Air Products' existing Alberta Heartland Hydrogen
Pipeline network for enhanced customer reliability, and phased
decarbonization of the entire network. This will truly be a
state-of-the-art facility," said Dr. Samir
J. Serhan, Chief Operating Officer at Air Products.
Serhan added that as Canada's
leading hydrogen supplier, Air Products 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 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 Experience in
Canada and Beyond
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 10:30 a.m. MDT/12:30
p.m. USET on November 8, 2022.
The general public can access the event on the Canadian
Innovation Facebook page.
About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases
company in operation for over 80 years focused on serving energy,
environmental, and emerging markets. The Company has two growth
pillars driven by sustainability. Air Products' base business
provides essential industrial gases, related equipment and
applications expertise to customers in dozens of industries,
including refining, chemicals, metals, electronics, manufacturing,
and food. The Company also develops, engineers, builds, owns and
operates some of the world's largest industrial gas and
carbon-capture projects, supplying world-scale clean hydrogen for
global transportation, industrial markets, and the broader energy
transition. Additionally, Air Products is the world leader in the
supply of liquefied natural gas process technology and equipment,
and globally provides turbomachinery, membrane systems and
cryogenic containers.
The Company had fiscal 2022 sales of $12.7 billion from operations in over 50
countries and has a current market capitalization of about
$55 billion. More than 21,000
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 reimagine what's possible to 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, 2022.
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.
Air Products and Chemicals, Inc.
1940 Air Products Boulevard, Allentown,
PA 18106-5500
www.airproducts.com
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SOURCE Air Products