Air Products signs long-term agreement to build a hydrogen production facility for PetroChina Company Limited, one of the largest oil and gas companies in the world.
The joint venture will be based in Sichuan, China and constitutes the first state-owned refinery which will outsource its hydrogen requirements.
The facility, a steam methane reformer (SMR), will produce hydrogen and syngas to support PetroChina’s Sichuan refinery and petrochemical facilities. The plant will offer a daily capacity of over 90m ft³ of hydrogen. Production is scheduled to commence in early 2012.
Vice President of Business Development for Asia at Air Products, commented, “We are honoured to be part of this first-ever contract to provide outsourced hydrogen to PetroChina. We have a similar JV that has already contracted with PetroChina to supply oxygen and nitrogen, so we are pleased that they have shown further confidence in Air Products providing a reliable, low-cost supply of hydrogen and other industrial gases for their new Sichuan refinery and ethylene complex. This project will help make cleaner transportation fuel available to meet China's growing demand.”
The hydrogen facility will incorporate technical advancements to maximize energy efficiency whilst reducing emissions. The enhanced plant design targets minimal heat loss which in turn reduces the amount of natural gas required to make hydrogen. These will aid Air Products’ corporate sustainability goals.
The agreement follows-up from September 2009’s contract between both companies to build an air separation unit (ASU) in time for late 2011.
The Sichuan hydrogen facility will be built through the global alliance between Air Products and Technip. Technip shall be responsible for the design and construction expertise for steam reformers while Air Products provides the gas separation technology. Meanwhile, Air Products will bring specialist operational and engineering knowledge.