Air Liquide sign Hydrogen contract with Chevron in the United States

28-May-2003

Air Liquide America has signed a contract to supply hydrogen and steam to the Chevron Products Co. refinery in El Segundo, California (USA). The new production facility, which will be able to produce up to 90 million cubic feet of hydrogen per day, represents one of Air Liquide's largest hydrogen plants worldwide. It is the ninth new hydrogen plant contract that Air Liquide has signed for various customers worldwide, since 2001, demonstrating Air Liquide's success in the growing hydrogen market.

The contract represents the first "over the fence" arrangement for the supply of hydrogen to one of Chevron's refineries in the US. (Chevron Products Co. is a subsidiary of ChevronTexaco Corp., headquartered in San Ramon, California.)

The new hydrogen plant will replace an existing unit and improve the overall refinery impact on the local and extended community via lower local air emissions and the ability to process more environmentally friendly CARB-Phase III gasoline. It is expected to go on stream in the last quarter of 2004.

"The Chevron project is important to Air Liquide America for two reasons: first, we are delighted to be associated with ChevronTexaco, one of the premier refiners in the world and with whom we are involved in other significant oxygen, nitrogen and energy developments." said Pierre Dufour, Chairman and CEO of Air Liquide America L.P. "Second, it further illustrates Air Liquide's ability to succeed in the competitive large hydrogen plant markets, thus confirming that the Group is well positioned for future hydrogen growth in many refining projects over the next few years."

"We are very pleased to be partnering with Air Liquide on this project," said Gary Yesavage, General Manager of Chevron Products Co.'s El Segundo refinery. "By replacing our existing technology with a new state-of-the-art plant, we will enhance our facility's reliability and ensure that we meet our customers' demand for clean burning fuels in this important market."

Hydrogen's increasing demand is largely driven by the need for refiners to comply with new environmental regulations being progressively introduced in the US and in Europe. The oil refining industry uses hydrogen to reduce the sulfur content in automotive fuels and thus in engine emissions. Hydrogen is also used as a vital feedstock in advanced hydroprocessing units, like Chevron's ISOMAX unit in El Segundo, which enable a refiner to convert a higher percentage of its crude oil into high-quality transportation fuels.

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