Air Products Enters Deal to Buy 5 Hydrogen Plants

April 1, 2020

4 Min Read
Air Products Enters Deal to Buy 5 Hydrogen Plants

Industrial gases firm Air Products has entered into an agreement to purchase five hydrogen steam methane reformer (SMR) hydrogen production facilities from PBF Energy Inc., the company announced in a release Monday. Located in California and Delaware, the facilities have a combined production capacity of 300 million scf/day. The firm also agreed to a long-term arrangement to supply hydrogen to PBF Energy. 

“Air Products has a very strong balance sheet. This puts us in an outstanding financial position to execute our strategy of investing in long-term onsite deals, which includes asset acquisitions like the one we are announcing today,” the company’s chairman, president, and chief executive officer, Seifi Ghasemi, said in a statement. “With this acquisition, not only do we gain five SMR plants, but we also secure a long-term hydrogen sale of gas agreement with an existing customer who is one of the largest independent refiners in North America.”

The company current operates five other hydrogen production plants in California. The facility in Delaware will be the company’s first facility in the state. 

“PBF is excited about expanding our long-standing relationship with Air Products,” PBF Energy Chairman and Chief Executive Officer Thomas Nimbley said in the release. “We are pleased to partner with a global leader in the industrial gas business and ensuring that our facilities continue to be supplied by a premier provider.”

Hydrogen produced by the company is used to refine petroleum.  

Air Products started work on a new industrial gases “megaproject” in the Jubail Industrial City in Jubail, Saudi Arabia in February, Powder & Bulk Solids reported. The effort includes a new steam methane reformer (SMR) for hydrogen production and an air separation unit (ASU) for nitrogen and oxygen. 

For more news headlines, articles, and equipment reviews, visit our Equipment Zones

More Powder & Bulk Solids articles:

Filaments Manufacturer Fined $258K for Machine Hazards

BASF Delays Annual Shareholders' Meeting Due to COVID-19

AkzoNobel Buys Stake in Turkey-Based Powder Coatings JV

Sign up for the Powder & Bulk Solids Weekly newsletter.

You May Also Like