September 05, 2007 Lehigh Valley, Pa.
Air Products (NYSE: APD) today announced it has been selected by Carson Hydrogen Power LLC (CHP), a joint venture between subsidiaries of BP and Edison Mission Energy, and has signed a preliminary agreement to work with CHP as it develops a hydrogen fired power plant. CHP chose Air Products to provide its expertise on the design, construction, and operation of world-class air separation units. It is anticipated that the power plant operation will require an Air Products owned facility to produce 7,000 tons per day (TPD) of oxygen and 17,000 tpd of nitrogen. Air Products also intends to market hydrogen produced by the power plant via its established California hydrogen pipeline supply network.
The proposed Carson Hydrogen Power project will convert a low grade refining by-product (petroleum coke) to produce substantially “carbon-free” hydrogen fuel and “low-carbon” electrical power in the Los Angeles basin. The facility’s design combines a number of existing industrial processes to provide a new option for generating electricity with significantly lower carbon dioxide (CO2) emissions. Petroleum coke produced at California refineries will first be converted to hydrogen and CO2 using Air Products’ oxygen, and approximately 90 percent of the CO2 will be captured. Most of the hydrogen gas stream will be used as fuel in a gas turbine to generate electricity, and some hydrogen will be further purified which Air Products intends to market. The captured CO2 will be transported by pipeline to an oilfield and injected into reservoir rock formations thousands of feet underground to stimulate additional oil production and trap the CO2.
“Air Products is pleased to provide its industrial gas and large project expertise to the development of this clean power generating facility. Air Products has extensive experience with air separation units of this size, and the addition of a new source of low-carbon hydrogen would increase the diversity of our existing hydrogen supply network. Air Products prides itself on reliability of supply to its customers, and this project is yet another way to continue providing refiners with a highly reliable supply of the hydrogen they need to make cleaner burning gasoline and diesel fuels,” said Jeffrey Lockett, Tonnage Gases region manager for California at Air Products.
Air Products, which has had an industrial presence in California since 1962, is also committed to increasing its hydrogen and other industrial gases supply infrastructure to meet the needs of refiners as well as those of the emerging hydrogen economy. Today, this infrastructure includes a hydrogen pipeline supply network in the Los Angeles basin, onsite hydrogen production for northern California refineries, a liquid hydrogen production facility in Sacramento, plus over 20 hydrogen fueling stations located throughout the state. These hydrogen fueling stations are meeting the current fueling needs for hydrogen fuel cell and hydrogen internal combustion automobiles and buses for mass transit in the drive to establish a network of fueling stations for alternative fueled vehicles. In fact, in 2004 California Governor Arnold Schwarzenegger designated an Air Products hydrogen fueling station at the University of California-Davis as station number one for the state’s Hydrogen Highway Network initiative. More recently, Air Products dedicated a next generation fueling station at the University of California at Irvine. “The opportunity to deliver substantially ‘carbon-free’ hydrogen to a hydrogen powered vehicle from a fueling station connected directly to an Air Products pipeline is an exciting glimpse into what the future might hold,” Lockett said.
Air Products has placed over 70 hydrogen fueling stations on stream in 12 countries, including for mass transit fueling in Beijing, China for buses to be used to shuttle athletes and visitors for the 2008 Olympic Games. Over 36,000 vehicle fuelings have already taken place using Air Products’ technology. More information on Air Products’ hydrogen fueling station technologies and activities can be found at www.airproducts.com/h2energy.
This announcement of Air Products’ involvement in the Carson Hydrogen Power project follows the recent announcement of Air Products’ significant participation in a petroleum coke fed gasification project in Texas. In that project, which will be one of the first major solid-fuel gasification facilities in the Gulf Coast, Air Products will market hydrogen produced by the operation to its industry leading Gulf Coast hydrogen supply pipeline network and construct and operate new world-class air separation units to produce over 7,000 tons per day (TPD) of oxygen for gasifier operations.
Air Products (NYSE:APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of $9 billion, operations in over 40 countries, and over 20,000 employees around the globe. For more information, visit www.airproducts.com.
NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.
Tel: (562) 276-1510