Air Products Awarded Long-Term Hydrogen and Nitrogen Supply Agreement for Indian Oil Corporation

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Air Products, a world leader in industrial gases and large-scale project development, execution and operation, announced the signing of a long-term supply agreement with Indian Oil Corporation Limited (IOCL), India’s flagship national oil company. Air Products will build, own and operate (BOO) a new industrial gases complex supplying hydrogen, nitrogen and steam to IOCL’s Barauni Refinery in Bihar, India. 

The new industrial gas complex will aid IOCL’s capacity expansion from six to nine million tonnes per annum producing Euro-VI or BS-VI compliant gasoline and diesel at its Barauni complex. The industrial gas complex will include the latest generation multi-feed hydrogen production facility supplying 70,000 normal cubic meters per hour (Nm3/hr) of hydrogen as well as steam, and a high-efficiency air separation unit producing 4,000 Nm3/hr of nitrogen. 

Air Products expects the new industrial gas complex for IOCL to come onstream in 2024. 

Air Products’ chief operating officer Dr. Samir J. Serhan said, “We are honored to work with IOCL, the largest petroleum refining company and largest Public Sector Undertaking in India. As one of the fastest growing economies in the world, our latest strategic investment in India will provide an efficient combination of industrial gas production technologies, enabling IOCL to meet ever-increasing transportation fuel demand. We look forward to reliably supplying IOCL’s industrial gas needs for decades to come.”

Juan Gonzalez, vice president, Large Project Business Development, Air Products Middle East, Egypt, Turkey and India, said, “We are proud to work with IOCL as they look to significantly expand their operations at Barauni. We look forward to bringing our global expertise, experience and world-class engineering capabilities to this project.” 

Once completed, the Barauni project will be Air Products’ second BOO project in India, after the Kochi Industrial Gas complex at BPCL’s Kochi Refinery.

Source: Air Products

Thyssenkrupp signs contract to install over 2GW electrolysis plant for Air Products in NEOM

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Air Products has awarded thyssenkrupp Uhde Chlorine Engineers a contract to supply a more than two-gigawatt (2 GW) electrolysis plant for one of the world’s largest green hydrogen projects at NEOM in Saudi Arabia. Under this contract, thyssenkrupp will engineer, procure and fabricate the plant based on their large-scale 20 megawatt (MW) alkaline water electrolysis module. Upon commissioning, the project partners – NEOM, ACWA Power and Air Products (“NEOM Green Hydrogen Company”) – will operate the facility, which will produce hydrogen to be synthesized into carbon-free ammonia for export exclusively by Air Products to global markets. Engineering and procurement activities have been initiated, and the start of production is scheduled for 2026.

Strong partnership with strong sustainability lever
In July 2020, Air Products, together with ACWA Power and NEOM, announced the signing of an agreement for world-scale green hydrogen-based ammonia production facility powered by renewable energy. thyssenkrupp was selected by its strategic partner Air Products early in the project as technology supplier and has worked intensively on early engineering and project development. The signing of the project contract is a key milestone of both companies’ joint effort over the past year to use their complementary technology, engineering and project execution strengths to develop green hydrogen production facilities. The realization of the project leverages thyssenkrupp’s large-scale technology supporting Air Products’ development of green hydrogen for sustainable transportation, chemicals and power generation.

Dr. Samir J. Serhan, Chief Operating Officer at Air Products, says: “This project milestone with thyssenkrupp furthers our strong progress at NEOM to deliver carbon-free hydrogen on a massive scale in the Kingdom and for the world. The development and execution of this innovative megaproject is one of many required to drive a successful energy transition, and we look forward to continuing to develop, build, own and operate facilities that help address the world’s significant energy and environmental challenges. This project is the kickoff to become a frontrunner in the green hydrogen economy.”

“As a world market leader in electrolysis we bring in two decisive factors to realize such gigawatt projects: With our large-scale standard module size and gigawatt cell manufacturing capacity per year together with our Joint Venture partner De Nora we are able to deliver large capacity projects today”, says Denis Krude, CEO of thyssenkrupp Uhde Chlorine Engineers. “With this gigawatt project, we are committed to invest into ramping up our manufacturing capacities further. We also aim for a strong local setup which is key to delivering customized service solutions throughout the entire plant life-cycle and enables our strategic partner in their vision to become a global decarbonization pioneer.”

Source: Thyssenkrupp

Aramco, Air Products, ACWA Power, and Air Products Qudra Sign Asset Acquisition and Project Financing Agreements for $12 Billion ASU/Gasification/Power Joint Venture in Jazan, Saudi Arabia

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Aramco, Air Products, ACWA Power and Air Products Qudra announced the signing and finalization of definitive agreements for the asset acquisition and project financing of the $12 billion air separation unit (ASU)/gasification/power joint venture (JV) in Jazan Economic City.

Aramco via its subsidiary Saudi Aramco Power Company (SAPCO) has a 20 percent share in the JV; Air Products 46 percent; ACWA Power 25 percent; and Air Products Qudra 9 percent. Moreover, Air Products’ total ownership position is 50.6 percent by owning an additional 4.6 percent through Air Products Qudra.

The JV is purchasing the ASUs, gasification, syngas cleanup, utilities and power assets from Aramco. The JV owns and operates the facility under a 25-year contract for a fixed monthly fee. Aramco will supply feedstock to the JV, and the JV will produce power, steam, hydrogen and other utilities for Aramco.

The JV serves Aramco’s Jazan Refinery, a megaproject to process 400,000 barrels per day of the crude oil to produce the main products such as ultra-light sulphur diesel, gasoline, and other products.

With the completion of these definitive agreements, all parties under the joint venture expect asset transfer and funding to occur during the month of October 2021. Air Products intends to conduct a public investor call at that time.

Mohammed Al Qahtani, Senior Vice President of Downstream, Aramco said: “We are very pleased to reach this significant milestone. Aramco originally built the world’s largest integrated gasification combined cycle (IGCC) complex to employ gasification technology for the first time in the Kingdom and to keep pace with the development of the Kingdom’s Southern Province industrially and economically. This JV is meant to be central to the self-sufficiency of our megaprojects at Jazan. We believe the JV will enhance the overall value of the refinery and integrated gasification combined cycle power plant, and aid in transforming the province by positioning Jazan Economic City for additional foreign investment and private sector involvement. In fact, we are pleased to have the Saudi Industrial Development Fund (SIDF) and 23 local and international lenders engaged in this transaction securing a total of $7.2Bn.  We are optimistic that future investment offers the potential to be a game-changer in the years ahead.”

Air Products Chairman, President and CEO, Seifi Ghasemi, said: “We are very proud to announce the finalization of the definitive agreements for this complex transaction and now move forward. This is a perfect fit with our growth strategy. It is a value-creating investment for Air Products and leverages our core syngas purification and industrial gas production capabilities. Most importantly, it is a privilege to further strengthen our relationship with Aramco, the world’s largest company, and to partner with ACWA Power and Qudra Energy in this megaproject, which supports the Kingdom’s Vision 2030 and building partnerships for mutual growth.”

Mohammad Abunayyan, Chairman of ACWA Power, said: “The successful financial agreement concluded today is the largest agreement of its kind in ACWA Power’s history and highlights our continued firm commitment to the Kingdom’s Vision 2030 and its strategic goals for the energy sector. A monumental shift is underway in Saudi Arabia’s energy sector, and we are proud of our partnership and close collaboration with Aramco and Air Products towards diversifying the energy mix and increasing the efficiency of the sector. Drawing on the pioneering expertise and capabilities of all joint venture partners, Jazan IGCC is set to be the largest integrated project for gasification and combined cycle energy production in the world. Bringing the most advanced technologies to the Kingdom, the Jazan project will push the boundaries. We are also exceptionally proud to add to ACWA Power’s track record in training and upskilling Saudi talent to meet the requirements of the sector.”

Source: Air Products

PetropipeFze

Air Products, ACWA Power and NEOM Sign Agreement for $5 Billion Production Facility in NEOM Powered by Renewable Energy for Production and Export of Green Hydrogen to Global Markets

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The World’s Largest Green Hydrogen Project Will Supply 650 Tons Per Day of Carbon-Free Hydrogen for Transportation Globally and Save the World Three Million Tons Per Year of CO2,

Air Products, in conjunction with ACWA Power and NEOM, announced the signing of an agreement for a $5 billion world-scale green hydrogen-based ammonia production facility powered by renewable energy. The project, which will be equally owned by the three partners, will be sited in NEOM, a new model for sustainable living located in the north west corner of the Kingdom of Saudi Arabia, and will produce green ammonia for export to global markets.

The joint venture project is the first partnership for NEOM with leading international and national partners in the renewable energy field and it will be a cornerstone for its strategy to become a major player in the global hydrogen market. It is based on proven, world-class technology and will include the innovative integration of over four gigawatts of renewable power from solar, wind and storage; production of 650 tons per day of hydrogen by electrolysis using thyssenkrupp technology; production of nitrogen by air separation using Air Products technology; and production of 1.2 million tons per year of green ammonia using Haldor Topsoe technology. The project is scheduled to be onstream in 2025.   

Air Products will be the exclusive off-taker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.

“We are honored and proud to partner with ACWA Power and NEOM and use proven technologies to make the world’s dream of 100 percent green energy a reality,” said Seifi Ghasemi, Chairman, President and Chief Executive Officer for Air Products. “Harnessing the unique profile of NEOM’s sun and wind to convert water to hydrogen, this project will yield a totally clean source of energy on a massive scale and will save the world over three million tons of CO2 emissions annually and eliminate smog-forming emissions and other pollutants from the equivalent of over 700,000 cars.”

Mohammad A. Abunayyan, ACWA Power Chairman, said, “Stemming from our belief in Vision 2030 and HRH Crown Prince Mohammed bin Salman’s aspirations for NEOM to become the global pioneer in sustainable living, the Board of Directors and Management of ACWA Power are proud to take part in this groundbreaking and first-of-its-kind investment in the world. ACWA Power has a proven track record of leveraging pioneering renewable technologies to deliver carbon-free power at the lowest cost. With our global experience, we are confident that our collaboration with an industry-leading company like Air Products will create significant opportunities in the production of green hydrogen, and further us in our goal to help countries meet their clean energy targets and unlock significant socio-economic benefits. Based in NEOM’s Industrial Cluster, and enabled by its unique mandate, this investment will integrate and localize cutting-edge technologies that will harness solar and wind power to produce sustainable and globally accessible green energy.”

NEOM CEO, Nadhmi Al-Nasr, said, “This partnership reflects our deep commitment to developing a carbon positive society which will be a beacon for sustainable living and a solution to many of the environmental challenges facing the world. This demonstrates the ability of NEOM to generate significant partnership opportunities for international and national investors. This is a pivotal moment for the development of NEOM and a key element in Saudi Vision 2030 contributing to the Kingdom’s clean energy and circular carbon economy strategy. As the world’s largest renewable hydrogen project, NEOM’s Board of Directors, headed by HRH Crown Prince Mohammed bin Salman, and the company’s Executive team are delighted to announce this significant milestone for NEOM in becoming a global leader in green hydrogen production and green fuels. We are also excited that two world-class organizations, Air Products and ACWA Power, have joined us in developing this major project, the first of many developments at this scale that will put NEOM at the heart of a new future society.”

Source: NEOM NewsRoom