Air Products to Construct Second Integrated Hydrogen and Cogeneration Plant at Port Arthur

25-Apr-2005

Air Products announced that it has signed a Letter of Intent to construct a new hydrogen production plant in Port Arthur, Texas to supply 110 million standard cubic feet per day (MMSCFD) of hydrogen to The Premcor Refining Group Inc.'s refinery, and to additional customers on Air Products' Gulf Coast hydrogen pipeline system. Air Products will also produce 100 megawatts of power for use by both companies and 1.2 million pounds per day of steam for Premcor's operation. The plant, to be owned and operated by Air Products, is expected to be on-stream in June 2006.

Premcor will use the hydrogen supplied by Air Products to make cleaner transportation fuels mandated by federal vehicle emissions control regulations. The steam and power production will allow Premcor to shutdown existing production assets to voluntarily reduce NOx (nitrogen oxides) emissions and also meet Premcor's increased steam and power requirements associated with its new diesel hydrotreater. This is the second Air Products hydrogen facility to serve Premcor's Texas oil refinery. Air Products' 105 MMSCFD hydrogen facility has been supplying Premcor at the Port Arthur refinery since 2001.

The new hydrogen facility will be part of Air Products' Gulf Coast pipeline network, which extends from the Houston Ship Channel in Texas to Lake Charles, La., and from Baton Rougeto Norco, La., and east of New Orleans. This pipeline network provides very highly-reliable hydrogen supply to approximately 50 refinery and process industry customers.

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