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News ReleaseConstruction Starts on Air Products' Second Renewable Energy Facility on Teeside

April 25, 2014 Teeside, UK

  • Ground breaking ceremony carried out by Cabinet Office Minister, Francis Maude MP
  • Project will create up to 800 new jobs
  • Cabinet Office to purchase all of the plant’s green energy

Construction starts on Air Products' second renewable energy facility on Teeside. Francis Maude MP, Minister for the Cabinet Office, today broke ground at Air Products’ second advanced gasification Renewable Energy Facility on Teesside. The ceremony, which was hosted by David Taylor, Vice President of Air Products’ Energy Business, marked the start of construction of the facility that will create 750 new jobs over the next 2-3 years and 50 permanent jobs when the plant enters commercial operation.

The Minister visited the construction site for “Tees Valley 2” (TV2) in Stockton on Tees near Billingham, following the Cabinet Office’s decision last year to purchase the plant’s power output for a 20 year period. The Cabinet Office’s energy contract with Air Products is part of the Government’s “Energy for Growth” program and meets 2% of the Government's overall energy consumption.

Construction starts on Air Products' second renewable energy facility on Teeside. During his visit to the Air Products’ TV2 site, the Minister took the opportunity to tour Air Products’ first renewable energy facility, Tees Valley 1 (TV1). TV1 is planned to be in start-up phase later this year and will be in commercial operation in 2015. Once completed, it will be the largest advanced gasification renewable energy facility in the world. The two renewable energy facilities will contribute to revitalisation of the local economy and help to foster a green skills base in advanced clean technology in the North East of England.

The TV2 facility is expected to come onstream in 2016 and will use the same advanced gasification technology as TV1 to convert pre-processed municipal, commercial and industrial waste - otherwise destined for landfill - into reliable, renewable power equivalent to the needs of 50,000 homes in the North East. Every year, up to 350,000 tonnes of non-recyclable waste will be diverted from landfill for energy generation use at TV2.

David Taylor, Vice President Energy Business, Air Products said: “Our agreement with the Cabinet Office serves as a strong endorsement to our state-of-the-art renewable energy projects and to the Teesside area as a leading renewable energy technology centre. Air Products is at the forefront of technological innovation, investing in green jobs and skills in the North East of England. Once TV2 enters commercial operation, the projects will have created over 1500 jobs in the region and Air Products will have invested significant resources into the local economy.”

Minister for the Cabinet Office Francis Maude said: “We are reforming Whitehall to get the best possible value for hardworking taxpayers, saving £10bn in 2012-3 alone. Before the last general election, government failed to leverage its huge buying potential to negotiate a good price and support the UK energy industry. "Energy for Growth" ensures the security of our energy infrastructure - it's good for the industry, good for taxpayers, and supports this Government's long-term plan for a stronger economy.”

“This new facility is a flagship for our “Energy for Growth” programme, supporting jobs for the North East. These projects demonstrate that the UK is an excellent market for investing in innovative new technology such as renewable energy. More importantly, the Air Products project provides a solution to the UK’s waste management challenge whilst strengthening the country’s energy security.”

NOTES TO EDITORS:

About Air Products

Air Products (NYSE:APD) provides atmospheric, process and specialty gases; performance materials; equipment; and technology. For over 70 years, the company has enabled customers to become more productive, energy efficient and sustainable. Recognised as one of the world’s most innovative companies by both Thomson Reuters and Forbes magazine, more than 20,000 employees in over 50 countries supply effective solutions to the energy, environment and emerging markets. These include semiconductor materials, refinery hydrogen, coal gasification, natural gas liquefaction, and advanced coatings and adhesives. In fiscal 2013, Air Products had sales of $10.2 billion. For more information, visit
www.airproducts.com.  

Note: This release may contain forward-looking statements within the safe harbour provisions of the (US) 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, 2013.

More information about the project and technology:

  1. Further details on the Air Products Tees Valley sites can be found here: www.airproducts.co.uk/teesvalley.
  2. Further details on the Government’s Energy for Growth scheme can be found here: https://www.gov.uk/government/news/energy-buying-plan-to-unlock-investment-for-growth  
  3. Advanced gasification is a type of advanced conversion technology (ACT), an innovative carbon‐lean process involving efficient, high‐temperature conversion of waste to renewable, base‐load electricity. It offers a significant reduction in greenhouse gas emissions compared to traditional waste treatment options. A non-hazardous solid by-product is also produced which could potentially be beneficially used in the manufacture of other products such as floor tiles, insulation, landscaping blocks or road aggregate.

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