US Air Products to build $4.5bn blue hydrogen project in Louisiana

Author: Stefan Baumgarten

2021/10/14

HOUSTON (ICIS)--US industrial gases major Air Products plans to build a $4.5bn “megaproject” to produce more than 750m standard cubic feet/day of blue hydrogen in Ascension Parish, Louisiana, it said on Thursday.

Blue hydrogen uses hydrocarbons as a feedstock, with the carbon dioxide (CO2) in the production process captured for permanent sequestration.

A portion of the blue hydrogen from the new facility will be compressed and supplied to customers by Air Products' US Gulf Coast hydrogen pipeline network.

The balance will be used to make blue ammonia that will be transported around the world and converted back to blue hydrogen for transportation and other markets.

Production is expected to start up in 2026.

CARBON
About 95% of the CO2 generated at the facility will be captured, compressed and transported by pipeline to multiple inland sequestration sites located along a pipeline corridor extending up to 35 miles to the east of the new production facility.

More than 5m tonnes/year of CO2 will be permanently sequestered in geologic pore space secured from the state of Louisiana about one mile beneath the surface.

Air Products has already received approval from the State Mineral and Energy Board, which is part of the Louisiana Department of Natural Resources, for the permanent sequestration of the CO2.

CANADA, SAUDI ARABIA
The Louisiana project announcement follows Air Products' announcement in June 2021 of a multi-billion-dollar net-zero hydrogen energy complex at Edmonton in Canada’s oil-rich Alberta province.

Air Products is also working on a green ammonia production facility in Saudi Arabia that will be powered by renewable energy for the production and export of carbon-free hydrogen to global markets.

"In addition to our leadership in gray hydrogen, our Canada project and this Louisiana project make us the leader in blue hydrogen,” said Air Products’ CEO, Seifi Ghasemi.

The company would also be a "world leader" in the production and supply of green, carbon-free hydrogen once the Saudi project comes on stream, he added.

In related news, the US Department of Energy (DOE) is looking into the feasibility of large-scale liquid hydrogen tank storage as it aims to enable the commercialisation of blue and green hydrogen exports, officials said earlier this week.

(Thumbnail image shows a truck carrying hydrogen. Image by Shutterstock)