Sourcing Renewables - December 9, 2022
Air Products Plans Huge Green Hydrogen Facility
Air Products announced Dec. 8 a joint venture with The AES Corporation to invest nearly $4 billion to build, own and operate a hydrogen production facility in Texas.
The facility will be capable of generating approximately 1.4 GW of wind and solar power generation alongside 200 metric tons per day of green hydrogen. Air Products says it will be the largest green hydrogen facility in the U.S.
The industrial gases company will serve as the exclusive off-taker and marketer of the green hydrogen through a 30-year contract, while the renewable energy and electrolyzer assets will be jointly and equally owned with AES.
It is estimated that if all the green hydrogen produced at the facility is used in the heavy-duty truck market, more than 1.6 million metric tons of CO2 emissions could be eliminated annually compared to diesel. More than 50 million metric tons of CO2 are expected to be avoided over the project’s lifetime.
The facility is expected to begin commercial operation in 2027, subject to the receipt of local permits and local, state and federal incentives.
“We are very pleased to announce this exciting joint venture with AES, which is one of the leading renewable energy companies in America,” Seifi Ghasemi, Air Products' Chairman, President and Chief Executive Officer, said in a statement. “The new facility in Texas will be, by far, the largest mega-scale clean hydrogen production facility in the U.S. to use wind and sun as energy sources. We have been working on the development of this project with AES for many years and it will be competitive on a world-scale while bringing significant tax, job and energy security benefits to Texas. We are excited to move forward and make clean green hydrogen available to U.S. customers in the near future.”