LEHIGH VALLEY, Pa.,
Jan. 8, 2020 /PRNewswire/ -- Air Products (NYSE: APD)
announced today its largest-ever investment in the United States in winning a long-term
onsite business model supply agreement for a project with Gulf
Coast Ammonia (GCA) in Texas City,
Texas. Air Products will build, own and operate (BOO) its
largest-ever steam methane reformer (SMR) to produce hydrogen which
will be connected to and extend, to approximately 700 miles, its
existing and the world's-largest hydrogen pipeline system in the
Gulf Coast; BOO an air separation unit (ASU) to supply nitrogen;
and will own and operate a steam turbine generator to supply power
and other utilities to GCA's new world-scale ammonia production
plant.
"This is an exciting project that we are very proud to have won.
When all facets of this project are combined, it sets a new high
for Air Products' investment—$500 million—for one project in
the United States. This project
will showcase Air Products' core strengths and capabilities
supplying hydrogen from an SMR and nitrogen from an ASU, and
leverages our core industrial gas strengths in many ways," said
Seifi Ghasemi, chairman, president
and chief executive officer of Air Products.
Ghasemi added, "In addition to this being our largest-ever U.S.
investment, the project also sets other Air Products' milestones.
It will feature the largest SMR we have ever built and will
operate, the largest per-day amount of hydrogen supplied to a
single customer under one contract, and it increases the size and
supply capacity of Air Products' extensive hydrogen pipeline system
in the Gulf Coast, which is the world's largest. This is all
successfully combined under a long-term contract for a project
located in the United
States."
"The project will meet or exceed all industry standards for the
safe production of ammonia, applies world-class technology in
production and storage, and will be the largest single train
ammonia synthesis loop in the world when completed. We look forward
to working with Air Products as a reliable, long-term supplier of
high-quality feedstock to our facility," said Ken Koye, president and chief executive officer
of GCA. "GCA is investing $600
million in Texas City and
creating new employment opportunities for Galveston County residents in the Texas City
Reinvestment Zone."
The pipeline segment of the project, which will transport
hydrogen to Texas City, is
targeted for onstream in the second half of 2021, with the
remainder of the facilities expected to be in commercial operation
in early 2023.
The approximately 175 million standard cubic feet per day
(mmscfd) SMR will include the addition of over 30 miles of hydrogen
pipeline from Texas City to
Baytown, to be connected to Air
Products' Gulf Coast Pipeline system. The GCA project will use
approximately 270 mmscfd of hydrogen from the SMR and Gulf Coast
Pipeline. The hydrogen production plant will feature the latest
technology to maximize energy efficiency and reduce emissions and
includes optimal heat integration, which in turn lowers feedstock
consumption. The plant configuration and deployed technologies
support Air Products' sustainability goals of reducing energy
consumption and emissions.
GCA's ammonia facility, which will produce approximately 3,600
metric tons per day of ammonia, will also benefit from Air
Products' supply of approximately 90 mmscfd of nitrogen from a new
ASU to be built and operated at the Texas
City site on property leased from Eastman, who has rights to purchase some of
the ammonia and will also provide various site services to GCA and
Air Products.
In connecting Air Products' new SMR facility to its existing
Gulf Coast Pipeline, hydrogen customers will see a value-add in
product supply reliability. With the investment to supply the GCA
project, the approximately 700-mile hydrogen pipeline system will
span from Texas City through the
Houston Ship Channel in Texas to
New Orleans, Louisiana, and supply
customers with over 1.7 billion feet of hydrogen per day from 24
hydrogen production facilities.
Pipelines offer a safe, robust and reliable supply of
hydrogen to refineries and petrochemical manufacturers around the
world. In addition to the Gulf Coast Pipeline, Air Products also
has hydrogen pipelines in California in the U.S.; in Sarnia, Ontario, Canada; and in Rotterdam, the Netherlands.
Air Products' Investor Call Details
Air Products will
hold a conference call on Wednesday, January
8, 2020 at 4:00 p.m. USET to
discuss the GCA project. The teleconference will be open to the
public and the media in listen-only mode by telephone and Internet
broadcast.
Live teleconference: 323-794-2094
Passcode: 7727693
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: 7727693
Available from 8:00 p.m. USET on
January 8, 2020 through 8:00 p.m. USET on January
15, 2020.
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 nearly 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.
The Company had fiscal 2019 sales of $8.9
billion from operations in 50 countries and has a current
market capitalization of about $50
billion. More than 17,000 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.
About Gulf Coast Ammonia
GCA is a special purpose company formed for the development,
financing, construction and commercial operations of the ammonia
production plant and associated storage tank and marine loading
facilities. GCA's operating partner is experienced with
refrigerated gas terminals and logistics, and anhydrous ammonia in
particular.
NOTE: This release may contain 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 reasonable expectations and assumptions as of
the date of this release regarding important risk factors. Actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors not anticipated by management,
including risk factors described in the company's Form 10K for its
fiscal year ended September 30,
2019.
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SOURCE Air Products