LEHIGH VALLEY, PA and ARLINGTON, VA (December 8, 2022) – Air Products (NYSE: APD) and The AES Corporation (NYSE: AES) today announced plans to invest approximately $4 billion to build, own and operate a green hydrogen production facility in Wilbarger County, Texas. This mega-scale renewable power to hydrogen project includes approximately 1.4 gigawatts (GW) of wind and solar power generation, along with electrolyzer capacity capable of producing over 200 metric tons per day (MT/D) of green hydrogen, making it the largest green hydrogen facility in the United States.
The facility, which is targeted to begin commercial operations in 2027, will serve growing demand for zero-carbon intensity fuels for the mobility market as well as other industrial markets. It will yield a totally clean source of energy on a massive scale, and, if all the green hydrogen were used in the heavy-duty truck market, it would eliminate more than 1.6 million metric tons of carbon dioxide (CO2) emissions annually when compared to diesel use in heavy-duty trucks. Over the project lifetime, it is expected to avoid more than 50 million metric tons of CO2, the equivalent of avoiding emissions from nearly five billion gallons of diesel fuel.
Air Products and AES*will jointly and equally own the renewable energy and electrolyzer assets, with Air Products serving as the exclusive off-taker and marketer of the green hydrogen under a 30-year contract.
The project would create more than 1,300 construction and 115 permanent operations jobs, as well as about 200 transportation and distribution jobs. It is also expected to generate approximately $500 million in tax benefits to the state over the course of the project’s lifetime, while extending Texas’ energy leadership.
“We are very pleased to announce this exciting joint venture with AES, which is one of the leading renewable energy companies in America. The new facility in Texas will be, by far, the largest mega-scale clean hydrogen production facility in the U.S. to use wind and sun as energy sources. We have been working on the development of this project with AES for many years and it will be competitive on a world-scale while bringing significant tax, job and energy security benefits to Texas. We are excited to move forward and make clean green hydrogen available to U.S. customers in the near future,” said Seifi Ghasemi, Air Products’ Chairman, President and Chief Executive Officer.
AES President and Chief Executive Officer Andrés Gluski stated, “This project will capitalize on AES’ position as one of the nation’s largest renewable energy developers and its global leadership in innovations such as energy storage systems and supplying around the clock clean energy to data centers. We are very pleased to partner with the world leader in hydrogen, Air Products, for this first of its kind mega-scale green hydrogen facility in the United States. We will build more than 1 GW of new solar and wind facilities to provide zero carbon energy for electrolysis and related production facilities. AES believes that green hydrogen has a key role to play in decarbonizing transportation and accelerating the future of energy.”
Demand for green hydrogen for mobility and industrial applications is expected to grow exponentially across the United States over the next decade. The growth in demand is supported by green hydrogen’s role in net-zero ambitions announced by several states and major corporations. The project is subject to receipt of local permits, and local, state and federal incentives.
*Alberta Investment Management Corporation (AIMCo) is an investor in AES’ clean energy business in the United States with 25% ownership in the business’ growth projects.
About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products’ base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest industrial gas and carbon-capture projects, supplying world-scale clean hydrogen for global transportation, industrial markets, and the broader energy transition. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and globally provides turbomachinery, membrane systems and cryogenic containers.
The Company had fiscal 2022 sales of $12.7 billion from operations in over 50 countries and has a current market capitalization of over $70 billion. More than 21,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products’ higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.
Air Products Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements: This release contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022, and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. Learn more at www.aes.com/green-hydrogen.
AES Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, rates of return consistent with prior experience and the COVID-19 pandemic.
Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2021 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Any AES Stockholder who desires a copy of the Company's 2021 Annual Report on Form 10-K filed February 28, 2022, with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company's website at www.aes.com.
FAQs
How does air products produce hydrogen? ›
Air Products makes hydrogen primarily through a process called steam methane reforming, where we react natural gas (methane) with steam (water). We can also produce hydrogen by biomass conversion or electrolysis, including electrolysis driven by renewable energy sources such as solar and wind.
What is green hydrogen energy? ›Green hydrogen (GH2 or GH2) is hydrogen generated by renewable energy or from low-carbon power. Green hydrogen has significantly lower carbon emissions than grey hydrogen, which is produced by steam reforming of natural gas, which makes up the bulk of the hydrogen market.
What are the best hydrogen stocks to buy? ›| Hydrogen Stock | Ticker Symbol | Market Cap |
|---|---|---|
| Air Products | (NYSE:APD) | $69.0 billion |
| Plug Power | (NASDAQ:PLUG) | $7.2 billion |
| Bloom Energy | (NYSE:BE) | $3.8 billion |
| Ballard Power Systems | (NASDAQ:BLDP) | $1.5 billion |
A framework, Direct Air Electrolysis (DAE) module, is designed to capture water from the air and directly convert it to hydrogen by electrolysis. The power supplied to the DAE is coupled with renewables to generate green hydrogen.
Is green hydrogen cheaper than gasoline? ›In 2021, hydrogen retailed $8.50/kg to $10.80/kg higher than gasoline prices matching the same fuel cost per mile for hybrids or conventional gasoline vehicles respectively. Hydrogen has been used commercially for over 80 years, so it is well developed.
Is green hydrogen better than electric? ›Hydrogen Cars
While the process to produce hydrogen gas can be complex, it is the most abundant element in the universe, meaning that hydrogen is a renewable fuel source. Hydrogen cars are also much faster to refuel than electric cars, while also offering greater ranges than electric vehicles.
“Green hydrogen could provide up to 24% of our energy needs by 2050, helping to cut emissions by around a third. In doing so, the transition to green hydrogen could provide $11 trillion of infrastructure investment opportunities over the next 30 years2 and direct annual revenues of $2.5 trillion.”
Which hydrogen stock is Amazon buying? ›Plug Power, which supplies fuel cells for electric forklifts used by Amazon and other companies, said the retail giant plans to buy thousands of tons of carbon-free “green” hydrogen from it per year in a deal that also includes an option to acquire a stake in the company worth up to $2.1 billion.
What stock is the Tesla of hydrogen? ›We pivot to some trending stock news. One major development on our radar is Plug Power's (NASDAQ:PLUG) partnership with Walmart (NYSE:WMT).
Who is the biggest supplier of hydrogen? ›China is currently the largest producer of hydrogen at about 33 million tons a year, with the bulk of that produced from fossil fuels, according to a CSIS report.
What happens if you breathe pure hydrogen? ›
Inhalation of 2.4% hydrogen gas does not appear to cause clinically significant adverse effects in healthy adults. Although these data suggest that inhaled hydrogen gas may be well tolerated, future studies need to be powered to further evaluate safety.
Can I heat my home with hydrogen? ›By blending green hydrogen into the existing distribution system, it will help to decarbonise the existing gas networks and is expected to heat approximately 800 homes, as well as providing pure and blended hydrogen for use in vehicles.
Can you power your home with hydrogen? ›Yes, hydrogen could provide carbon-free heat in a home, but heating with hydrogen demands nearly six times as much renewable electricity as does an electric heat pump.
Does Air Products produce green hydrogen? ›We are very pleased to partner with the world leader in hydrogen, Air Products, for this first of its kind mega-scale green hydrogen facility in the United States. We will build more than 1 GW of new solar and wind facilities to provide zero carbon energy for electrolysis and related production facilities.
How does wind produce hydrogen? ›Wind-generated electricity can power water electrolysis to produce hydrogen, which could be used to fuel vehicles, or stored and then used in fuel cells to generate electricity during times of the day when the wind resource is low.
What are the 4 basic methods of producing hydrogen? ›Natural gas reforming (also called steam methane reforming or SMR) Biomass gasification. Biomass-derived liquid reforming. Solar thermochemical hydrogen (STCH).
Is hydrogen naturally found in air? ›Natural abundance
It is present as a gas in the atmosphere only in tiny amounts – less than 1 part per million by volume. Any hydrogen that does enter the atmosphere quickly escapes the Earth's gravity into outer space.
Adani New Industries Ltd (ANIL)
Adani New Industries Ltd is the biggest name in India's energy and power sector. They have decided to spend over $50 billion in the coming decade to supplement their green hydrogen capacity.
Some of the leading green hydrogen companies in the world include Shell plc (LON:SHEL), Linde plc (NYSE:LIN), and Reliance Industries (NASDAQ:RELI). In this article, we shall go over the top green hydrogen companies in the world.
Does green hydrogen have a future? ›Since the process and the byproduct of producing green hydrogen don't emit CO2, it's seen as the energy of the future for the world to hit net zero emissions. That means doing away with fossil fuels or avoiding carbon-intensive processes.
Why is hydrogen better than solar or wind? ›
Hydrogen fuel cells do not produce noise pollution like other sources of renewable energy, such as wind power. This also means that, much like electric cars, hydrogen powered vehicles are much quieter than those that use conventional internal combustion engines.
Does hydrogen damage the atmosphere? ›Digging into the science of hydrogen
But when emitted into the atmosphere, hydrogen contributes to climate change by increasing the amounts of other greenhouse gases such as methane, ozone and water vapor, resulting in indirect warming.
Inhalation of 2.4% hydrogen gas does not appear to cause clinically significant adverse effects in healthy adults. Although these data suggest that inhaled hydrogen gas may be well tolerated, future studies need to be powered to further evaluate safety.
Can I make my own hydrogen fuel? ›Yes, it's possible to generate hydrogen in a science fair kind of way by electrolysing water. A liter of water will get you about 111 grams of hydrogen if you can capture it all. You would probably need one of these industrial electrolysis units to actually get pure enough hydrogen for your car.
What is the cheapest way to produce hydrogen? ›The carbon monoxide is reacted with water to produce additional hydrogen. This method is the cheapest, most efficient, and most common. Natural gas reforming using steam accounts for the majority of hydrogen produced in the United States annually.
Can hydrogen replace natural gas? ›Up to a fifth of the natural gas currently used could be replaced by hydrogen, according to the Energy Networks Association (ENA), the industry body representing energy network operators in the UK.
Can humans breathe only hydrogen? ›Hydrogen can be an asphyxiant by displacing the oxygen in the air. However, for the volume of hydrogen needed to do that in a normal sized room, the bigger issue would be explosion risks.
Is burning hydrogen bad for the environment? ›Hydrogen interferes with the breakdown of heat-trapping methane in the atmosphere. It has other warming effects, too. Here, hydrogen increases high-altitude water vapor. Hydrogen increases ozone levels here, a greenhouse gas and key component of smog.
Is burning hydrogen clean? ›Hydrogen is a clean fuel that, when consumed in a fuel cell, produces only water. Hydrogen can be produced from a variety of domestic resources, such as natural gas, nuclear power, biomass, and renewable power like solar and wind.