LEHIGH VALLEY, Pa.,
March 30, 2020 /PRNewswire/ -- Air Products (NYSE: APD) today
announced it has signed agreements with PBF Energy Inc. (NYSE: PBF)
that include the $530 million
purchase of five hydrogen steam methane reformer (SMR) hydrogen
production plants and the long-term supply of hydrogen from those
already operating plants to PBF refineries. The SMRs, with a
combined nearly 300 million standard cubic feet per day of
production capacity, are located in Torrance and Martinez, California and Delaware City, Delaware. The deal is targeted
to close during the third quarter of Air Products' 2020 fiscal
year.
"Air Products has a very strong balance sheet. This puts us in
an outstanding financial position to execute our strategy of
investing in long-term onsite deals, which includes asset
acquisitions like the one we are announcing today. With this
acquisition, not only do we gain five SMR plants, but we also
secure a long-term hydrogen sale of gas agreement with an existing
customer who is one of the largest independent refiners in
North America," said Seifi Ghasemi, Chairman, President and Chief
Executive Officer at Air Products.
PBF Energy Chairman and Chief Executive Officer Thomas Nimbley said, "PBF is excited about
expanding our long-standing relationship with Air Products.
We are pleased to partner with a global leader in the industrial
gas business and ensuring that our facilities continue to be
supplied by a premier provider."
Air Products is known as a leader in the supply of hydrogen to
refineries in order to make cleaner burning transportation
fuels. Hydrogen is widely used in petroleum refining processes to
remove impurities found in crude oil such as sulphur, olefins and
aromatics to meet product fuels specifications. Removing these
components allows gasoline and diesel to burn cleaner and thus
makes hydrogen a critical component in the production of cleaner
fuels needed by modern, efficient internal combustion engines.
The company also operates one of the most successful carbon
capture projects in the world in Port Arthur, Texas, where the captured carbon
dioxide (CO2) is injected into the ground and used for
enhanced oil recovery in the state. Since 2013, Air Products has
captured nearly 10 million tons of CO2 at Port Arthur that has been put to beneficial
use.
Air Products currently operates 12 industrial gas facilities in
California, which includes five
hydrogen production plants. The hydrogen from these plants is used
in the making of ultra-low sulphur transportation fuels (gasoline,
diesel and jet). Air Products also supplies hydrogen for
fueling and fueling infrastructure in California to support the growing fleet of
hydrogen fuel cell electric vehicles.
The SMR being purchased in Delaware
City would be Air Products' first major asset operating in
Delaware.
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 $45
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 or follow us on LinkedIn, Twitter,
Facebook or Instagram.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is
one of the largest independent refiners in North America,
operating, through its subsidiaries, oil refineries and related
facilities in California,
Delaware, Louisiana, New
Jersey and Ohio. Our mission is to operate our facilities
in a safe, reliable and environmentally responsible manner, provide
employees with a safe and rewarding workplace, become a positive
influence in the communities where we do business, and provide
superior returns to our investors.
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