Air Products makes hydrogen to then make gasoline and diesel in Alberta

A 2005 press image from Air Products.

Need hydrogen in Alberta, Canada? Air Products (along with its Air Products Canada Ltd. subsidiary) has announced the commercialization of a hydrogen plant this week. Air Products' new plant can make over 100 million standard-cubic-feet-per-day. The hydrogen is sold to a Petro-Canada refinery near Edmonton, Alberta, Canada and to "other customers in the Alberta Heartlands industrial corridor" under long-term agreements.

While Air Products has some knowledge about fueling hydrogen vehicles (in South Carolina and plans for London) this hydrogen isn't intended for transportation use. Instead, it goes to the refinery to help process bitumen into a synthetic crude oil and then, with the hydrogen, into refined oil products like gasoline and diesel fuel (135,000 barrels a day at the Edmonton refinery). More details after the break.

Press Release:

Air Products Commercializes Second Hydrogen Plant in Alberta, Canada

LEHIGH VALLEY, Pa., April 21 /PRNewswire-FirstCall/ -- Air Products (NYSE:APD) , and its subsidiary Air Products Canada Ltd., today announced the commercialization of its new hydrogen plant producing in excess of 100 million standard-cubic-feet-per-day (MMSCFD) to serve the Petro-Canada refinery near Edmonton, Alberta, Canada and other customers in the Alberta Heartlands industrial corridor. Air Products owns and operates the hydrogen and steam generating facility, the largest outsourced hydrogen production plant in Canada, and serves its customers under long-term agreements.

"We are pleased to expand our relationship with Petro-Canada in this important oil sands region," said Alex Masetti, vice president, Tonnage Gases North America for Air Products. "We will continue to invest to serve the growing industrial gas needs of upgraders, refiners and other industrial customers in Canada."

The newly commercialized facility is the second to be constructed by Air Products to supply hydrogen to Petro-Canada's refinery, as well as several additional customers in the Edmonton area. An earlier facility was successfully placed on-stream in June 2006. The two inter-connected hydrogen facilities are part of Petro-Canada's Refinery Conversion Project that will allow the Edmonton Refinery to run entirely on oil sands feedstock. The project is scheduled for completion in 2008 and will process bitumen from the company's oil sands holdings, along with other oil sands feedstock, into 135,000 barrels per day of refined products.

Oil sands are composed of bitumen, sand, water, and clay, and must be physically separated prior to further processing. The separated bitumen is processed into synthetic crude oil. With the addition of hydrogen, the synthetic crude oil is then further refined into value-added products like gasoline and diesel fuel.

"The Alberta Industrial Heartland is an area that will continue to grow in hydrogen demand as more oil sands crude is processed. Refiners need a dependable supply of hydrogen to maximize production of fuels, and Air Products is recognized in this industry for the reliable and safe production of hydrogen," said Steve Losby, general manager - Canada for Air Products. Air Products' three hydrogen facilities now operating in Canada are the first third-party on-purpose production facilities serving Canadian refineries.

The new hydrogen facility was built under the global alliance between Air Products and Technip. This alliance continues to provide the worldwide refining industry with competitive technology, plus world-class safety with "over the fence" hydrogen supply. Technip provides the design and construction for hydrogen generation units 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.

About Air Products

Air Products (NYSE:APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. Air Products has annual revenues of $10 billion, operations in over 40 countries, and 22,000 employees around the globe. For more information, visit .

About Technip

With a workforce of 23,000 people, Technip ranks among the top five corporations in the field of oil, gas and petrochemical engineering, construction and services. The Group is headquartered in Paris. The Group's main operating centers and business units are located in France, Italy, Germany, the UK, Norway, Finland, the Netherlands, the USA, Brazil, Abu-Dhabi, China, India, Malaysia and Australia. In support of its activities, the Group manufactures flexible pipes and umbilicals, and builds offshore platforms in its manufacturing plants and fabrication yards in France, Brazil, the UK, the USA, Finland and Angola, and has a fleet of specialized vessels for pipeline installation and subsea construction. The Technip share is listed in Paris on Euronext Paris. More information can be found at .

***NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.

[Source: Air Products]

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