TX: Air Products to Build $350-$400M SMR in Baytown
28 Oct, 2015
Air Products, the leading global hydrogen provider, announced it will invest $350-$400 million to build, own and operate a world-scale steam methane reformer (SMR) in Baytown, Texas. The SMR will produce hydrogen and carbon monoxide (CO) to be supplied to customers from Air Products' Gulf Coast Hydrogen and CO Pipeline Networks. Both product capacities from the new facility are already sold-out ahead of the anticipated plant onstream in 2018.
"This plant demonstrates to our customers our dedication to providing them with excellent customer service. This SMR strengthens our market-leading position and also Air Products' ability to serve the many customers on our pipeline networks with a new, efficient and reliable source of hydrogen and carbon monoxide, which will be owned and operated by Air Products," said Marie Ffolkes, president, Industrial Gases – Americas at Air Products.
The SMR and cold box will produce approximately 125 million standard cubic feet per day of hydrogen and a world-scale supply of carbon monoxide.
The new SMR will be built through the global hydrogen alliance between Air Products and Technip, a world leader in project management, engineering and construction. The plant will feature the latest technology to maximize energy efficiency and reduce emissions, and will include optimal heat integration, which in turn lowers feedstock consumption. The plant configuration and deployed technologies support Air Products' overall sustainability goals of reducing energy consumption and emissions.
For over 20 years the Air Products and Technip global alliance has provided the worldwide refining industry with competitive technology and world-class safety. The alliance is responsible for over 35 hydrogen production plants located in 11 countries around the world and produces well over two billion standard cubic feet of hydrogen per day for clean fuels production. Technip provides the design and construction expertise for steam reformers while Air Products provides the gas separation technology. Air Products, through its extensive operating network, and Technip, from its large reference base, also bring effective operational and engineering knowledge to "design-in" high reliability and efficiency. The plants are operated and maintained by Air Products under long-term agreements with customers.
Ffolkes added that the ability for the new plant to connect to the Gulf Coast Pipeline (GCP), the world's largest hydrogen plant and pipeline network system, is always a value-added plus for hydrogen customers in terms of ensuring product reliability. Air Products officially dedicated its GCP in 2012. The 600-mile pipeline span stretches from the Houston Ship Channel in Texas to New Orleans, Louisiana, and supplies customers with over 1.4 billion feet of hydrogen per day from over 21 hydrogen production facilities.
Pipelines offer a safe, robust and reliable supply of hydrogen to the refinery and petrochemical industries around the world. Globally, Air Products' pipeline operational expertise is evidenced by its network of systems. Besides the GCP, Air Products also has a hydrogen pipeline in California in the U.S., in Sarnia, Ontario, Canada, and in Rotterdam, the Netherlands.
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.
About Air Products
Air Products APD, -0.35% is a leading industrial gases company. For nearly 75 years, the company has provided atmospheric, process and specialty gases, and related equipment to manufacturing markets including metals, food and beverage, refining and petrochemical, and natural gas liquefaction. Air Products' materials technologies segment serves the semiconductor, polyurethanes, cleaning and coatings, and adhesives industries. Over 20,000 employees in 50 countries are working to make Air Products the world's safest and best performing industrial gases company, providing sustainable offerings and excellent service to all customers. In fiscal 2014, Air Products had sales of $10.4 billion and was ranked number 276 on the Fortune 500 annual list of public companies. For more information, visit www.airproducts.com.
Technip is a world leader in project management, engineering and construction for the energy industry.
From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 37,500 people are constantly offering the best solutions and most innovative technologies to meet the world's energy challenges.
Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.
Technip shares are listed on the NYSE Euronext Paris exchange and traded in the USA on the OTCQX marketplace (otcqx:TKPPY) as American Depositary Receipts.