ARKANSAS, February 8 (Future Headlines)- Air Products, a leading industrial gases company headquartered in Pennsylvania, is making significant strides in solidifying its position in the hydrogen market, with a hydrogen and energy transition backlog valued at approximately $15 billion. With eight hydrogen projects currently underway, Air Products is leveraging its extensive experience in the field to capitalize on the growing demand for clean energy solutions.
During the company’s earnings webcast on February 5, CEO Seifi Ghasemi outlined Air Products’ strategic approach, emphasizing the dual pillars of its growth strategy: the core industrial gases business and the development of blue and green hydrogen projects. These initiatives are driven by a commitment to sustainability, aiming to address pressing energy and environmental challenges on a global scale.
Hydrogen, traditionally used in oil refining and ammonia production, is gaining traction as a key element in decarbonization efforts across various industries. Recognizing the potential of hydrogen to reduce reliance on fossil fuels and decarbonize hard-to-abate sectors, Air Products is capitalizing on its extensive experience in the hydrogen sector to lead the transition to cleaner energy sources.
“With sustainability underpinning both pillars of our strategy, we aim to contribute meaningfully to the goal of decarbonizing the world,” Ghasemi affirmed. By delivering low- and zero-carbon hydrogen solutions at scale, Air Products aims to position itself as a key player in the global transition to cleaner energy.
A significant portion of Air Products’ planned capital expenditure for the year will be allocated to the NEOM green hydrogen project in Saudi Arabia, a monumental undertaking expected to be one of the world’s largest green hydrogen projects. Collaborating with partners ACWA Power and NEOM Green Hydrogen Co., Air Products plans to produce up to 600 tonnes per day of green hydrogen by year-end 2026, utilizing solar and wind energy as part of the production process.
Additionally, Air Products is investing in sustainable aviation fuel facilities in Los Angeles and blue hydrogen production facilities in Canada. The company’s hydrogen facility in Edmonton, Alberta, represents a $1.6 billion investment and is slated to commence operations in the second half of fiscal year 2025. In Texas, Air Products is partnering with The AES Corp. to develop a green hydrogen production facility, while in Louisiana, plans are underway for the Louisiana Clean Energy Complex, a $4.5 billion project focused on blue hydrogen production and CO2 sequestration.
Despite reporting higher volumes and pricing for the first quarter of 2024, Air Products experienced a decline in sales in the Americas due to lower energy costs. However, the company remains optimistic about its prospects, with a strong pipeline of projects and a commitment to driving innovation in the hydrogen market.
As Air Products continues to expand its presence in the hydrogen sector, it is poised to play a pivotal role in shaping the future of clean energy and driving the transition to a more sustainable world. Through strategic investments and a focus on technological advancements, Air Products is laying the groundwork for a cleaner, greener future.
Reporting by Kevin Wood; Editing by Sarah White