LEHIGH VALLEY, Pa.,
Oct. 22, 2015 /PRNewswire/
-- Air Products (NYSE: APD), the leading global hydrogen
provider, announced today it has signed a long-term hydrogen supply
agreement with Pallas Nitrogen Texas, LLC. Air Products will
supply 44 million standard cubic feet per day of hydrogen from its
existing Gulf Coast Pipeline (GCP) to Pallas. The supply is
to begin in mid-2016 when Pallas begins ammonia production
operations at their plant, which will be located on land leased
from Air Products at its established Pasadena, Texas industrial gas manufacturing
location.
"This contract further loads our Gulf Coast hydrogen pipeline
and network system, and at the same time makes use of some
available land at our Pasadena
plant that we were able to lease to the customer. It is really a
win-win for us and our customer, and illustrates our continuous
improvement approach to optimize our capabilities and assets," said
Bill Hammarstrom, vice president,
HyCO Americas at Air Products.
"We are excited to have Air Products, a premier global hydrogen
producer, as Pallas' host and hydrogen supplier for our
Pasadena ammonia plant. The
strategic location and direct access to their Gulf Coast Pipeline
affords us great confidence with respect to safe, reliable and
economic delivery of hydrogen to the Pallas ammonia plant. We look
forward to a long-term, mutually successful relationship for this
plant and our future work with Air Products," said Steve Dopuch, chief executive officer at
Pallas.
Hammarstrom said this agreement again demonstrates the value of
the GCP, which is the world's largest hydrogen plant and pipeline
network system. The GCP allows customers to easily be
connected to the system and be assured of unparalleled product
reliability. Air Products officially dedicated its GCP in
2012. The 600-mile pipeline span stretches from the Houston
Ship Channel in Texas to
New Orleans, Louisiana, and
supplies customers with over 1.4 billion feet of hydrogen per day
from over 21 hydrogen production facilities.
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 the GCP, Air Products also has a
hydrogen pipeline in California in
the U.S., in Sarnia, Ontario,
Canada, and in Rotterdam,
the Netherlands.
Hydrogen, to be used in this instance by Pallas for ammonia
production, 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.
About Air Products
Air Products (NYSE: APD) is a
leading industrial gases company. For nearly 75 years, the company
has provided atmospheric, process and specialty gases, and related
equipment to manufacturing markets including metals, food and
beverage, refining and petrochemical, and natural gas liquefaction.
Air Products' materials technologies segment serves the
semiconductor, polyurethanes, cleaning and coatings, and adhesives
industries. Over 20,000 employees in 50 countries are working to
make Air Products the world's safest and best performing industrial
gases company, providing sustainable offerings and excellent
service to all customers. In fiscal 2014, Air Products had sales of
$10.4 billion and was ranked number
276 on the Fortune 500 annual list of public companies. For more
information, visit www.airproducts.com.
About Pallas
Pallas Nitrogen Texas, LLC (the Company)
is a privately held entity formed to develop, own and operate a 660
ton-per-day ammonia plant located in Pasadena, Texas. Significant
development, permitting and engineering have been completed on the
Project and full construction is expected to commence in the 4th
quarter of 2015. Production is anticipated to begin mid-2016.
Company stakeholders have considerable experience owning, operating
and successfully divesting multiple turn-around assets in the coal
industry. Company management brings over 50 years of combined
project development and management experience in addition to
strategic relationships to bear in support of the Pasadena
Project. For more information, email
info@pallasnitrogen.com.
NOTE: This release may contain forward-looking statements
within the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's reasonable expectations and assumptions as of
the date of this release regarding important risk factors. Actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors not anticipated by management,
including risk factors described in the Company's Form 10K for its
fiscal year ended September 30,
2014.
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SOURCE Air Products