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News ReleaseAir Products to Build the World’s Largest Advanced Gasification Energy-from-Waste Facility

Air Products’ Pioneering Clean Energy Project Will Create Hundreds of Jobs in the UK and Generate Enough Energy to Power up to 50,000 Homes

August 07, 2012 Lehigh Valley, Pa.

Air Products (NYSE: APD) today announced it will build and operate the world’s largest renewable energy plant in the UK using advanced gasification energy-from-waste (EfW) technology. The Tees Valley plant, located at the New Energy and Technology Business Park, near Billingham, Teesside, will be the first of its kind in the UK, and the largest of its kind anywhere in the world with an approximate capacity of 50MW.

The plant is expected to produce enough reliable, controllable, and renewable electricity to power up to 50,000 homes. Situated in a location with good access and connectivity to the local and national electrical distribution infrastructure and in close proximity to landfill disposal facilities, it will divert up to 350,000 metric tons of non-recyclable waste from the landfill per year – helping to meet the UK’s waste diversion targets.

Air Products has longstanding expertise in building and operating large-scale industrial gas and energy-related projects on a safe, reliable and cost-effective basis. The plant is expected to create up to 700 construction jobs and over 50 permanent jobs once operational, helping to revitalize the local economy and grow a green skills base in advanced clean technology in the North East of England.

The Westinghouse advanced gasification technology provided by AlterNRG, is leading the next generation of EfW technologies. It offers a more efficient, cleaner conversion of waste-to-power than traditional EfW technologies and has the potential to generate a wider range of useful products, including heat, hydrogen, chemicals and fuels. Longer term, the potential generation of renewable hydrogen could be deployed for commercial use, such as fuelling public transport.

“Our investment in advanced gasification EfW technology is a natural extension of our onsite business model. Offering an innovative growth opportunity, it allows us to further extend our leading position in the global energy market and continue to deliver on Air Products’ commitment to sustainability,” said John McGlade, chairman, president and chief executive officer of Air Products.

“The UK is committed to diversifying its sources of energy, strengthening its energy security and reducing carbon emissions. This pioneering clean energy technology model is well-suited to these requirements, offering a sustainable solution to the UK’s waste management strategy. The facility will also create skilled jobs in the area and we are hopeful it will provide an indirect boost to the local economy through the use of local service companies, hotels and other businesses.”

Air Products has secured the necessary environmental and planning approvals and the renewable energy facility is scheduled to enter commercial operation in 2014. Work has already begun to prepare the site. Full-scale construction activities will begin ramping up in the coming weeks. 

“Advanced gasification has a key role to play in delivering renewable energy and I warmly welcome the decision by Air Products to proceed with its Tees Valley Renewable Energy Facility. Air Products' announcement reflects the UK’s commitment and support for clean energy, combined with our stable and transparent environment for investors,” said UK Deputy Prime Minister Nick Clegg.

"With the world's spotlight on the UK this summer, we are working hard through the British Business Embassy program to help UK and international companies to capitalize on new trade and investment opportunities to deliver safe, secure, sustainable and smarter energy ‘ecosystems’, from extraction through to the end user,” added Clegg.

For more information, please visit: http://airproduct.co.uk/teesvalley/  

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. More than 18,000 employees in over 40 countries supply innovative 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 2011, Air Products had sales of approximately $10 billion. For more information, visit http://www.airproducts.com/.  

The management of Air Products will host a conference call today, Tuesday August 7, 2012, at 9:00 a.m. ET to discuss this announcement. The company welcomes members of the investment community to listen to the call live by dialing 719-325-4835 and entering the passcode 8234990. The live webcast of the call can be accessed at http://www.airproducts.com/company/news-center/UK-gasification-telecon-info.aspx. An audio replay of the call will be available after the call’s conclusion and can be accessed by calling 888-203-1112 in the U.S. or 719-457-0820 outside the U.S. and entering the passcode 8234990.

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, without limitation, unanticipated contract terminations or cancellation or postponement of the projects; interruption in ordinary sources of supply of raw materials, including waste; the ability to attract, hire and retain skilled workers; the impact of environmental, healthcare, tax or other legislation and regulations; efficacy or safety concerns with respect to the Company’s technology or operations; the inability to obtain necessary regulatory approvals; difficulty or excessive cost of construction of the facility and/or the infringement of patents or intellectual property rights of others and other risk factors described in the Company's Form 10K for its fiscal year ended September 30, 2011. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this document to reflect any change in the Company's assumptions, beliefs or expectations or any change in events, conditions, or circumstances upon which any such forward-looking statements are based.

EDITOR’S NOTES:
About the Tees Valley Renewable Energy Facility and Advanced Gasification Technology
- The Tees Valley Renewable Energy facility’s core conversion technology, a Westinghouse gasifier supplied by AlterNRG, has been used successfully in other countries such as Japan. This is the largest energy-from-waste facility based on this technology globally and the first time that it will be used in the UK at this scale.
- It provides the foundation for a renewable energy source using waste which could otherwise go to landfill.
- Advanced gasification is a more efficient energy-from-waste process than incineration and has a lower environmental impact, producing 42% less CO2 emissions per MWh than incineration.
- An advanced gasification-based plant can produce a number of different outputs from waste, including electricity, heat, chemicals, fuels, or renewable hydrogen that could be used to power low-carbon vehicles.

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Contact Information

  • Press Contact
    Robert Brown
    (610) 481-1192
    Air Products and Chemicals, Inc.
    7201 Hamilton Boulevard
    Allentown, PA 18195-1501
    USA
  • Europe/Mid East/Africa
    Albert Raich
    +34 93 2900964
  • Investor Contact
    Simon Moore
    (610) 481-7461
    Air Products and Chemicals, Inc.
    7201 Hamilton Boulevard
    Allentown, PA 18195-1501
    USA
    (610) 481-2729
Reception facility of the proposed plant.

Layout of Proposed Facility

Graphic showing reception facility of proposed plant.

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