Praxair and BP Sign Hydrogen Supply Memorandum of Understanding
DANBURY, Conn., May 10, 2002 -- Praxair, Inc. has signed a memorandum of understanding with BP to develop a long term sourcing relationship for the supply of hydrogen to BP's Texas City, Texas, chemicals and refinery operations. The agreement ensures alignment with BP's strategic sourcing objectives for industrial gases.
BP will use the hydrogen as a feedstock in the production of very low-sulfur gasoline, diesel fuel and jet fuel. BP is committed to supplying a full slate of low sulfur, cleaner fuels for on-road transportation from its Texas City Refinery over the next few years. The agreement is also fully aligned with BP's voluntary commitment to reduce emissions of nitrogen oxides in the Houston/Galveston area as well as reduce carbon dioxide to combat global warming.
Anticipating the growing requirements of BP and other hydrogen customers, Praxair plans to add approximately 300 million cubic feet per day (330,000 cubic meters per hour) of hydrogen capacity to its 300-mile Gulf Coast pipeline system by designing and constructing new steam methane reformers with state-of-the-art emission controls and by utilizing various by-product hydrogen streams.
"Praxair is committed to helping refiners meet increasingly stringent regulations for transportation fuels that will be implemented over the next four years," said Dan Yankowski, vice president, South Region, for Praxair's North American Industrial Gases organization.
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