LSB Industries, Inc., through a wholly-owned subsidiary has concluded a license
agreement with AirGen Corporation, a Texas-based startup company that may
have developed a novel method of producing hydrogen. Under the license
agreement, the LSB subsidiary will study the use of the patent pending
technology for production of bulk hydrogen.
Hydrogen is the primary
feedstock material for ammonia production and ammonia is the feedstock for
LSB's Chemical Business' nitrogen based chemical products, such as nitric
acid and nitrogen based blasting products and fertilizers. The technology
is in the early, developmental stage and has not been proven by LSB to have
commercial value. The agreement contemplates a pilot facility to be
constructed within two years subject to proof of concept.
The license agreement is exclusive within the field of ammonia
production from hydrogen produced through the licensed technology. Further,
if the technology is successfully implemented at LSB or any affiliate of
LSB, the agreement provides exclusive sublicensing rights to LSB within the
global ammonia industry, where it is contemplated that LSB and AirGen would
cooperate to pursue sublicensing of the technology.
Jack E. Golsen, Chairman and CEO of LSB, stated that "the technology
looks promising, and if proven to be commercially viable, it could have a
major impact on the nitrogen fertilizer business by eliminating natural gas
as the primary source of hydrogen in the production of ammonia."