Praxair has signed a 20-year agreement to supply approximately 170 million standard cubic feet per day of hydrogen and 2,000 tons per day of nitrogen to a new 750,000 metric tonnes per year ammonia complex.

The complex is being built by a new entity formed by Yara and BASF. To help fulfil the raw material requirements of this world-scale ammonia project located in Freeport, Texas, Praxair is investing more than $400m to add hydrogen and nitrogen production capacity and extending its Gulf Coast pipeline systems approximately 46 miles from Texas City to the Freeport area. Praxair’s pipeline systems are supported by multiple hydrogen and air separation plants and product storage capabilities including Praxair’s innovative 2.5 billion standard cubic foot high-purity hydrogen storage cavern. The pipeline extensions are scheduled to be in operation in 2016 and the supply to the complex is expected to start in late 2017.

“This is an opportunity for Praxair to build out its presence in Freeport, Texas, one of the largest chemical complexes in the western hemisphere,” said Eduardo Menezes, executive Vice President, Praxair. “Praxair’s ability to capture and process by-product hydrogen generated by multiple crackers that are being installed in the Gulf Coast and add this product to the hydrogen produced by our on-purpose steam methane reformer facilities to reliably deliver high-purity hydrogen was critical for this award. We are excited to be a part of this project and to be working alongside Yara and BASF.”

Speaking on behalf of the newly-formed entity, Yara International President and Chief Executive Officer Torgeir Kvidal said, “Praxair has been working closely with us to ensure this project becomes a reality. There have been several advantages to working with Praxair including their long history of providing supply reliability along with the infrastructure and industrial gas innovations we need to run a world-class ammonia plant with a low-carbon footprint.”

Praxair operates over 50 hydrogen production facilities and seven hydrogen pipeline systems worldwide. Refinery and chemical customers globally benefit from Praxair’s complete portfolio of large-volume industrial gases, cylinder gases and specialised technologies and services.

The deal between Yara and BASF was also confirmed today in an announcement from the companies.