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Air Products to Supply Three Nitrogen Generation Plants to an Energy Project of National Importance in The Netherlands

Nitrogen to be Used to Condition Imported Natural Gas as Substitute for Discontinued Local Sources

Air Products (NYSE: APD) and N.V. Nederlandse Gasunie today announced the signing of an industrial gas equipment agreement that will help to address a matter of national energy importance for The Netherlands. Air Products will supply Gasunie three generation plants to produce the nitrogen needed to condition imported natural gas to the specification required in commercial and consumer applications throughout the country.

The equipment to be supplied by Air Products is part of a response to natural gas extraction issues The Netherlands is facing. The Country has long sourced natural gas from its domestic Groningen Field. However, that extraction has resulted in seismic activity which now requires a switch to imported gas. Complicating the new supply issue is that the imported natural gas is incompatible with the applications currently served by the domestic Groningen source.

The plants to be built and supplied by Air Products will provide the solution. They will produce the nitrogen required to condition the imported natural gas to the correct specification, making it suitable for widespread use in the country. The three plants, to be located in Zuidbroek, near Groningen, will produce a combined 180,000 cubic metres per hour of nitrogen when brought onstream in October 2021.

“We are honored to be part of the energy solution for The Netherlands. We have had a relationship with Gasunie since the late 1980s at Ommen and are pleased to be called on again to provide the technology to meet the Country’s industrial gas requirements. We believe our selection for this very important project results from a combination of our market competitiveness, and the efficiency of design and the reliability of our nitrogen generation plants,” said Dr. Samir J. Serhan, executive vice president at Air Products.

Erwin Mollink, Director Large Projects at Gasunie said: “The nitrogen facility is of great importance for the reduction of gas production in Groningen. As early as 2022, the production of Groningen gas must be reduced to below the level of 12 billion cubic meters per year. We look forward to working with Air Products and are committed to ensuring that the nitrogen facility can be safely, reliably and timely put into operation.”

Paul Hoogeveen, general manager – Rotterdam/Tonnage at Air Products said, “Our selection points to our record of expertise in air separation. Air separation is where Air Products began. Time and experience have taught us how to get the best out of the cryogenic air separation process, both in terms of safety and high efficiency, which are fundamental to the selection of our nitrogen generation system by Gasunie for Zuidbroek.”

Air Products already has vast experience in the natural gas supply chain with its world-leading liquefied natural gas (LNG) technology. Air Products’ LNG process technology and equipment is the heart of an LNG production plant. The technology, in place at some of the most remote locations around the world, takes natural gas and unlocks its value by liquefying it and making it possible to economically ship it. The LNG is eventually re-gasified for energy use. A majority of total worldwide LNG is produced with Air Products’ technology. 

Air Products, which has been operating in The Netherlands for 50 years, is actively engaged in discussions with the Country’s government and other stakeholders on the future Klimaatakkoord, bringing the company’s process and operational expertise and a global perspective to these important policy developments. From an operational standpoint, Air Products’ world-scale facilities play a critical role in the Country’s largest port, Rotterdam, supporting the efficient and economic operation of key manufacturing industries including providing the hydrogen and oxygen that allow refineries to produce cleaner, low-sulphur fuels. Hydrogen from Air Products’ facilities in Rotterdam is also used in the fueling of hydrogen-powered fuel cell electric vehicles.

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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, 2018.