Air Products has won a long-term onsite business model supply agreement for a project with Gulf Coast Ammonia (GCA) in Texas City, Texas, marking its largest ever US investment.
The agreement will see Air Products build, own and operate its largest-ever steam methane reformer that will produce hydrogen and will be connected to its existing hydrogen pipeline system in the Gulf Coast.
The American industrial gas giant will also build, own and operate an air separation unit (ASU) to supply nitrogen, and will own and operate a steam turbine generator to supply power and other utilities to GCA’s new world-scale ammonia production plant.
“When all facets of this project are combined, it sets a new high for Air Products’ investment - $500m – for one project in the US,” said Seifi Ghasemi, Chairman, President and CEO of Air Products.
“This project will showcase Air Products’ core strengths and capabilities, supplying hydrogen from a steam methane reformer and nitrogen from an ASU and leverages our core industrial gas strengths in many ways.”
“It will feature the largest steam methane reformer we have ever built and will operate the largest per-day amount of hydrogen supplied to a single customer under one contract, and it increases the size and supply capacity of Air Products’ extensive hydrogen pipeline system in the Gulf Coast, which is the world’s largest.”
“The project will meet or exceed all industry standards for the safe production of ammonia, applies world-class technology in production and storage, and will be the largest single train ammonia synthesis loop in the world when completed,” said Ken Koye, President and CEO of GCA.
The pipeline segment of the project, which will transport hydrogen to Texas City, is targeted to be onstream in the second half of 2021, with the remainder of the facilities expected to be in commercial operation in early 2023.
The approximately 175 million standard cubic feet per day (mmscfd) steam methane reformer will include the addition of over 30 miles of hydrogen pipeline from Texas City to Baytown and will be connected to Air Products’ Gulf Coast Pipeline system.
The GCA project will use approximately 270 mmscfd of hydrogen from the steam methane reformer and Gulf Coast Pipeline. The hydrogen production plant will feature the latest technology to maximise energy efficiency and reduce emissions.
GCA’s ammonia facility will produce approximately 3,600 metric tonnes per day of ammonia and will also benefit from Air Products’ supply of approximately 90 mmscfd of nitrogen from the new Air Products ASU.
The approximately 700-mile hydrogen pipeline system will span from Texas City through the Houston Ship Channel in Texas to New Orleans, Louisiana, and supply customers with over 1.7 billion feet of hydrogen per day from 24 hydrogen facilities.
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