Air Products inks three hydrogen supply deals in Canada

30 March 2010 21:21  [Source: ICIS news]

TORONTO (ICIS news)--Air Products has won three contracts to supply customers with hydrogen from its “Heartland Hydrogen Pipeline” in Canada’s Alberta province, the US industrial gases major said on Tuesday.

Under the deals, the 30-mile pipeline near Edmonton would supply operations of Shell Canada, Williams Energy and Sherritt International there, Air Products said. The hydrogen is produced by two Air Products plants in Strathcona County near Edmonton.

The pipeline is scheduled to begin commercial operations this year. It was built to supply refiners, oil sands upgraders, chemical producers and other industries in the Edmonton region.

Air Products said Shell Canada would use its hydrogen supplies to upgrade high-viscosity, extra-heavy crude oil, also known as bitumen, at its Scotford upgrader site in Alberta.

Williams would use the hydrogen to treat certain olefinic synthetic gas liquids at its fractionation facility near Edmonton, Air Products said. 

These liquids are extracted from off-gas produced by oil-sands upgraders and are a feedstock for Alberta’s petrochemical industry. Alberta’s oil sands industry is seen as a significant source of feedstock for existing and potential new chemical plants there.

Meanwhile, natural resources firm Sherritt International would use the hydrogen in the production of high-purity metal products, Air Products said.

Financial terms or volumes were not disclosed.

Air Products added that it expected to conclude additional supply contracts with several other customers in coming months.

For more on Air Products, Shell and other producers visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
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