Set to be commissioned in second-half 2015, Air Products and subsidiary Air Products Canada Ltd. plan to build, own and operate a new world-scale hydrogen production plant in Canada.

The plant will be located adjacent to Shell Canada’s Scotford facility located northeast of Edmonton, Alberta.

It will produce over 150 million standard cubic feet per day (MMSCFD) of hydrogen and will be connected to Air Products Canada’s existing Heartland Hydrogen Pipeline system, which supplies refiners, upgraders, chemical processors and other industries in the Alberta Industrial Heartland region.

The new Canadian plant will be built under a long-term agreement for Air Products to supply Shell Scotford with hydrogen and steam; a contract which represents the first award under a recently signed Enterprise Framework Agreement (EFA) between Shell and Air Products.

The EFA provides a template for all future industrial gas contracts between Shell and Air Products.

Wilbur Mok, Vice-President - North America Tonnage Gases at Air Products, explained, “Refineries, upgraders, and other customers in the Heartland region have increasing demands for hydrogen. This new facility, which is connected to our established hydrogen pipeline system, will provide a very reliable source of hydrogen for these industries.”

“Our customers in the U.S. Gulf Coast have noted the benefit of being connected to a large hydrogen network pipeline system when it comes to enhanced supply reliability. We believe that model will also serve the Heartland customers well”

“We are pleased to be increasing our relationship with Shell, who we already supply at Scotford and other locations around the world.”

Mok added that this follows Air Products’ well-established on-site business model of winning profitable projects by signing long-term agreements with reputable customers.

The Shell Scotford industrial location will gain an added supply reliability benefit from its connection to Air Products Canada’s 30-mile hydrogen pipeline – this pipeline is also fed by two existing hydrogen production plants in Edmonton that produce over 180 MMSCFD of hydrogen.

“Our customers in the US Gulf Coast have noted the benefit of being connected to a large hydrogen network pipeline system when it comes to enhanced supply reliability. We believe that model will also serve the Heartland customers well,” said Mok.

The new Air Products Canada hydrogen plant is to be commissioned in the second half of 2015 pending regulatory approval.