Air Products has announed a $4.5 billion blue hydrogen clean energy complex in Eastern Louisiana, the company’s largest-ever Investment in the US.
Air Products will build, own and operate the megaproject, which will produce over 750 million standard cubic feet per day (MMSCFD) of blue hydrogen in Ascension Parish, Louisiana.
‘Blue’ products are produced utilising hydrocarbons as a feedstock, with the carbon dioxide (CO2) in the production process captured for permanent sequestration.
A portion of the blue hydrogen will be compressed and supplied to customers by Air Products’ extensive US Gulf Coast hydrogen pipeline network. The pipeline stretches more than 700-miles from Galveston Bay in Texas to New Orleans, Louisiana, and can supply customers with more than 1.6 billion cubic feet of hydrogen per day from approximately 25 production facilities, including blue hydrogen from Air Products’ Port Arthur, Texas facility.
The megaproject is expected to be operational in 2026 and Air Products said it will will also feature the world’s largest instance of CO2 capture for permanent sequestration and produce only environmentally friendly blue products.
Air Products Chairman, President, and CEO Seifi Ghasemi said, “This landmark megaproject will not only create jobs but make Louisiana and Ascension Parish leaders in the US clean energy transition. Air Products is fully invested in and committed to projects that leverage our build-own-operate, technology, financial, and sustainability capabilities, and this project brings all of those core strengths together. We are very excited about the model this project represents in the broader energy transition and thank the state of Louisiana for its collaboration on the pore space to safely and permanently sequester the captured CO2. We look forward to building on our long partnership with Louisiana and constructing a facility that will serve as a leading example of clean energy production around the globe.”
Approximately 95% of the CO2 generated at the facility will be captured, compressed and transported safely by pipeline to multiple inland sequestration sites located along a pipeline corridor extending up to 35 miles to the east of the new production facility.
Air Products will provide all of the complex’s products – blue hydrogen and co-products (liquid nitrogen, liquid oxygen and liquid argon) – to customers in the US and around the world.
The Louisiana clean energy megaproject announcement follows Air Products’ announcement in June of a multi-billion-dollar net-zero hydrogen energy complex in Alberta, Canada.
Ghasemi added, “In addition to our leadership in gray hydrogen, our Canada project and this Louisiana project make us the leader in blue hydrogen. The energy transition will occur in stages, and the megaproject we are announcing today in Louisiana will help the State meet its ambitious goals while providing new sources of blue products for customers in the US and around the globe.”