Air Liquide Large Industries has announced that it has executed a letter of intent with ConocoPhillips to build a 120 million standard cubic feet per day steam methane reformer (SMR).

Under the terms of the letter of intent, Air Liquide has begun work on engineering and procurement for the new facility, which it will build, own and operate. The unit will be located at ConocoPhillips\\$quot; refinery in Rodeo, California, on the northeastern shore of San Francisco bay.

The new unit, scheduled to be completed by mid-2008, will supply the existing and future requirements of the Rodeo Refinery and will also provide the foundation to support future hydrogen opportunities that are anticipated in the San Francisco area. Execution of the supply agreement is expected within weeks.

Air Liquide executive vice president Pierre Dufour, said: \\$quot;We are very pleased to have reached this agreement with ConocoPhillips to build a new large scale hydrogen unit at Rodeo, in the heart of San Francisco Bay Area. This hydrogen contract represents a significant milestone in the competitive hydrogen market and gives Air Liquide a solid position in the San Francisco Bay Area from which to capitalize on future growth opportunities.\\$quot;