Air Products has signed a $530m agreement with PBD Energy through which it will purchase five hydrogen steam methane reformer hydrogen production plants.

The agreement announced today also includes the long-term supply of hydrogen from those already operating plants to PBF refineries.

Located in California and Delaware, the steam methane reformers showcase an approximate combined production capacity of 300 million standard cubic feet per day.

“Air Products has a very strong balance sheet,” said Seifi Ghasemi, Chairman, President and CEO of Air Products.

“This puts us in an outstanding financial position to execute our strategy of investing in long-term onsite deals, which includes asset acquisition like the one we are announcing today.”

“With this acquisition, not only do we gain five steam methane reformer plants, but we also secure a long-term hydrogen sale of gas agreement with an existing customer who is one of the largest independent refiners in North America.”

The deal is targeted to close during the third quarter of Air Products’ 2020 fiscal year.

Thomas Nimbley, Chairman and CEO of PBF Energy said, “PBF is excited about expanding our long-standing relationship with Air Products.”

“We are pleased to partner with a global leader in the industrial gas business and ensuring that our facilities continue to be supplied by a premier provider.”

The steam methane reformer located in Delaware City marks Air Products’ first major asset operating in the state.