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News ReleaseAir Products to Work with China’s SIEG on 350 MW Oxyfuel Electrical Generation Demonstration Project

October 04, 2010 Lehigh Valley, Pa.

Air Products (NYSE: APD) today announced an agreement with Shanxi International Energy Group Co., Ltd (SIEG) to perform a feasibility study and reference plant design on its proprietary oxyfuel carbon dioxide (CO2) purification technology for potential installation at SIEG’s 350 MW Oxyfuel Electrical Generation Demonstration Project. The demonstration project, to be located at SIEG’s power plant in Taiyuan, Shanxi, intends to purify CO2 emissions for capture for other application use or sequestration. The U.S. Department of Energy and China National Energy Administration have agreed to include this project in the U.S.-China Fossil Energy Protocol – Annex II: Clean Fuels, which is designed to promote scientific and technological cooperation between countries.

“We are honored that SIEG selected Air Products and our technology for this study and pre-plant design. We have demonstrated at smaller scale that oxyfuel technology can successfully purify CO2 for capture. A project this large, being world scale at 350 MW, is the next logical step for the technology,” said David J. Taylor, vice president – Energy Businesses at Air Products. Taylor added under the agreement that Air Products’ study and plant design will provide SIEG detail for both oxygen production and CO2 purification needs, and both plants will be world scale size.

Purification has been discussed as a critical component to successfully sequestering carbon dioxide (CO2) emissions from industrial and power generation processes. Air Products’ technology is designed to purify the CO2 by targeting removal of up to 95 percent of the impurities in the waste gas including sulfur oxides (SOX), hydrogen chloride, and nitrogen oxides (NOX). These acidic impurities must be removed from the CO2 stream to remove corrosive elements before the purified CO2 is transported for use or potential sequestration.

The company has specifically focused on purification of the resulting oxyfuel combustion flue gas, developing a robust process for efficient removal of trace impurities. 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 compression. This provides cost savings in the oxyfuel combustion process and minimizes these components in the sequestered CO2. Details on Air Products' CO2 and purification technologies are at www.airproducts.com/CO2_capture.

Air Products is currently working on several CCS demonstration projects around the world. These projects include:

  • Air Products announced in June it was selected to receive $253 million in Phase 2 funding from DOE’s Industrial Carbon Capture and Sequestration Program. Air Products will design, construct and operate a state-of-the-art system to capture CO2 from its two steam methane reformers (SMR) in Port Arthur, Tex. The SMRs produce hydrogen to assist in the making of cleaner burning transportation fuels by refinery customers on Air Products’ Gulf Coast hydrogen pipeline network. The recovered and purified CO2 would then be transported for use in enhanced oil recovery. The CO2 removal units will be designed by Air Products and use technology to be retrofitted to each SMR unit.
  • The world’s first full demonstration of oxyfuel carbon capture and sequestration with Vattenfall AB, one of Europe’s leading energy companies. Air Products is installing its proprietary 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’ pilot plant is to be operational in 2010.
  • Air Products recently completed pilot plant CO2 purification technology tests at Alstom Power, Inc. in Windsor, Conn. as part of DOE’s goal to further develop new and cost-effective technologies for the capture of CO2 from the existing fleet of U.S. coal-fired power plants. The CO2 purification system supporting the oxyfuel technology development project was located at Alstom’s boiler simulation facility where Air Products purified a portion of the CO2 from flue gas, or waste gas, from Alstom’s tangentially-fired (T-fired) coal combustion unit operated in oxy-combustion mode. T-fired boilers are the most prevalent pulverized boilers used to burn coal to make steam at coal-fired power plants and make up over 40 percent of the installed base of utility boilers in the U.S. and around the world.
  • In collaboration with the Alberta Energy Research Institute, a 2010 study focusing on advanced CO2 capture technology for use with gasification.

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. In fiscal 2009, Air Products had revenues of $8.3 billion, operations in over 40 countries, and 18,900 employees around the globe. For more information, visit www.airproducts.com.  

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, 2009.

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