This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Air Products To Build New World-Scale Canada Hydrogen Plant To Support Shell Scotford Facility

Stocks in this article: APD





LEHIGH VALLEY, Pa., Oct. 16, 2013 /PRNewswire/ -- Air Products (NYSE: APD), and its subsidiary Air Products Canada Ltd., today announced plans to build, own and operate a new world-scale hydrogen production plant adjacent to Shell Canada's Scotford facility located northeast of Edmonton, Alberta, Canada.  The Air Products facility 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 Air Products Canada hydrogen plant is to be commissioned in the second half of 2015 pending regulatory approval.

The new Canadian plant will be built under a long term agreement for Air Products to supply Shell Scotford with hydrogen and steam.  The Scotford contract 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. 

" 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. We are pleased to be increasing our relationship with Shell, who we already supply at Scotford and other locations around the world," said Wilbur Mok, vice president - North America Tonnage Gases at Air Products. 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 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," said Mok.

Pipelines offer a safe, robust and reliable supply of hydrogen to the refinery and petrochemical industry around the world. Globally, Air Products' pipeline operational expertise is evidenced by its network of systems. Besides this newly announced pipeline, Air Products also has a hydrogen pipeline in Sarnia, Ontario, Canada, and operates the world's largest hydrogen pipeline network in the United States Gulf Coast, as well as pipeline systems in California in the U.S. and Rotterdam, the Netherlands.

The new hydrogen facility will be built through the global hydrogen alliance between Air Products and Technip, a world leader in project management, engineering and construction. The plant will feature the latest technology advancements to maximize energy efficiency and emissions reduction, and will include optimal heat integration, which in turn lowers feedstock consumption during production. The plant configuration and deployed technologies support Air Products' overall sustainability goals of reducing energy consumption and emissions.

For 20 years the Air Products and Technip global alliance has provided the worldwide refining industry with competitive technology and world-class safety. The alliance is responsible for over 35 hydrogen production plants located in 11 countries around the world and produces well over two billion standard cubic feet of hydrogen per day for clean fuels production. Technip provides the design and construction expertise for steam reformers while Air Products provides the gas separation technology. Air Products, through its extensive operating network, and Technip, from its large reference base, also bring effective operational and engineering knowledge to "design-in" high reliability and efficiency. The plants are operated and maintained by Air Products under long-term agreements with customers.

Hydrogen is widely used in petroleum refining processes to remove impurities found in crude oil such as sulphur, olefins and aromatics to meet product fuels specifications. Removing these components allows gasoline and diesel to burn cleaner and thus makes hydrogen a critical component in the production of cleaner fuels needed by modern, efficient internal combustion engines.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs