$4.5 B blue H2 clean energy complex slated for Louisiana

Louisiana Governor John Bel Edwards and Air Products Chairman, President and CEO Seifi Ghasemi unveiled a U.S. $4.5 B clean energy complex to be built in Louisiana that will make the state a leader in the clean energy transition.

Air Products will build, own and operate the megaproject, which will produce over 750 MM standard ft/d of blue hydrogen in Ascension Parish, Louisiana. Blue products are produced utilizing hydrocarbons as a feedstock, with the CO2 in the production process captured for permanent sequestration. 

A portion of the blue hydrogen will be compressed and supplied to customers by Air Products' extensive U.S. Gulf Coast hydrogen pipeline network. The network is the largest hydrogen pipeline system in the world, stretching more than 700 miles from Galveston Bay in Texas to New Orleans, Louisiana. Today, this vast U.S. Gulf Coast pipeline network can supply customers with more than 1.6 Bft of hydrogen per day from approximately 25 production facilities, including blue hydrogen from Air Products' Port Arthur, Texas facility. The Port Arthur facility has captured approximately 1MMt of CO2 annually since 2013, with the CO2 transported via pipeline and utilized for enhanced oil recovery operations.

The balance of the blue hydrogen from the new Ascension Parish facility will be used to make blue ammonia that will be transported around the world and converted back to blue hydrogen for transportation and other markets.

The innovative megaproject will also feature the world's largest instance of CO2 capture for permanent sequestration and produce only environmentally friendly blue products. The megaproject is expected to be operational in 2026.

"This is a major industrial investment that will create quality manufacturing jobs while limiting environmental impacts, a goal envisioned by my Climate Initiatives Task Force," Gov. Edwards said. "Carbon capture and sequestration are important to Louisiana's efforts to reduce carbon dioxide emissions while maintaining jobs and growing our manufacturing base. This project is a clear demonstration of our ability to grow the Louisiana economy while lowering the carbon footprint of industry."

About 95% of the CO2 generated at the facility will be captured, compressed and transported safely by pipeline to multiple inland sequestration sites located along a pipeline corridor extending up to 35 miles to the east of the new production facility. Over 5MM metric tpy of CO2 will be permanently sequestered in geologic pore space secured from the State of Louisiana approximately one mile beneath the surface. Air Products has already received approval from the State Mineral and Energy Board, which is part of the Louisiana Department of Natural Resources, for the permanent sequestration of the CO2

Air Products will provide all of the complex's products ― blue hydrogen and co-products (liquid nitrogen, liquid oxygen and liquid argon) ― to customers in the U.S. and around the world.