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News ReleaseProprietary Tech Joins Worlds Demo of Oxyfuel CO2 Capture and Sequestration at Vattenfall

March 30, 2009 Lehigh Valley, Pa.

Air Products (NYSE: APD) today announced it will play a key role in the world's first full demonstration of oxyfuel carbon capture and sequestration with the signing of an agreement with Vattenfall AB, one of Europe's leading energy companies. Air Products will install its proprietary carbon dioxide (CO2) capture, purification and compression system at Vattenfall's research and development facility in Schwarze Pumpe, Germany, which is viewed globally as the preeminent CO2 oxyfuel project. Air Products will focus specifically on the purification and compression of oxyfuel combustion flue gas. The two companies also executed a joint research and development agreement related to the project. Air Products' pilot plant is to be operational at Schwarze Pumpe in December 2010.

"This is the world's first full demonstration of oxyfuel CO2 capture and sequestration, and our unique CO2 purification and compression technology will be validated at pilot scale through this work," said David J. Taylor,  vice president – Energy Businesses at Air Products. "We are honored to have been chosen by Vattenfall for this project, and we look forward to working closely with one of the global leaders in CO2 capture solutions."

"It is crucial for Vattenfall to qualify a portfolio of optional technology use in the coming deployment phase of CCS, carbon capture and storage. Air Products has been engaged in innovative oxyfuel solutions for many years and we are pleased to get them on board in our pilot facility," said Göran Lindgren, CCS R&D manager at Vattenfall.

At the Schwarze Pumpe facility, Air Products will take flue gas directly off Vattenfall's 30 megawatt (MW) wall-fired boiler at the oxyfuel pilot plant. It will purify and compress the carbon dioxide, a portion of which will ultimately be transported for sequestration. Air Products' proprietary sour compression technology uses a staged compression process to optimize pressure, hold-up, and residence time to allow removal of impurities during the compression process. This allows cost savings in the oxyfuel combustion process and minimizes the concentration of acidic components, important in preventing corrosion during the CO2 sequestering process. This pilot will demonstrate the efficient purification of CO2, and remove inert gases, in particular oxygen. In addition, it will incorporate novel membrane technology, targeting carbon capture rates as high as 98 percent.

More information on Air Products' CO2 purification technologies can be found at:

Vattenfall inaugurated the 30 MW pilot plant for carbon dioxide capture at its lignite coal-fired power plant at Schwarze Pumpe in September 2008. Based on the conclusions from this pilot plant, the next step will be to build larger demonstration power plants, for which feasibility studies have already been initiated and target on-stream status in 2015.

More information on Vattenfall's carbon capture technology is at:

Air Products is currently working on several carbon capture and storage demonstration projects around the world. In early March the company announced work with the U.S. Department of Energy (DOE) to design and construct a CO2 purification system in support of an oxyfuel technology development project at a boiler simulation facility in Windsor, Connecticut. In 2008, it was announced that Air Products' oxyfuel sour compression technology had been demonstrated in experimental work carried out by Imperial College London with flue gas from a 160 kilowatt coal-fired combustion installation at Doosan Babcock's facility in Renfrew, Scotland, as part of the Oxycoal-UK Project. Air Products has also announced a CO2 capture study for gasification in collaboration with the Alberta Energy Research Institute. The study, focused on advanced carbon dioxide capture technology for use with gasification, is to be completed in October 2010.

Additionally, in January 2009, a team led by Air Products and including Imperial College London and Doosan Babcock Energy Ltd. were presented the Rushlight Carbon Capture and Storage Award 2008 for work addressing impurity removal in CO2 waste streams from coal-fired power plants. The Rushlight Awards promote and celebrate the leading environmental technologies and innovations by organizations throughout the UK and Ireland.

About Air Products
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. Air Products has annual revenues of over $10 billion, operations in more than 40 countries, and 21,000 employees around the globe.

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About Vattenfall
Vattenfall is Europe's fifth largest generator of electricity and the largest generator of heat. Its vision is to be a leading European energy company. Today, Vattenfall generates electricity, produces heat and supplies energy to several million customers in the Nordic countries and northern Europe. Relying on coal as an energy source in some of the countries, Vattenfall is strongly committed to CCS and plays a key role in the development of these innovative technologies. It has set as target a 50 percent reduction of its CO2 emissions by 2030 and has the vision to become CO2 neutral by 2050.

More information on Vattenfall can be found at:

NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.

Media Contact:
Staffan Görtz (Vattenfall)
Tel: (+46) 10 47 301 50

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