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Air Products and AES Announce Plans to Invest
Approximately $4 Billion to Build First Mega-scale Green Hydrogen
Production Facility in Texas
NEWS PROVIDED BY
AES CORP. Dec 08,
2022
Project Capable of Producing over
200 Metric Tons Per Day of Green Hydrogen, Powered
by Approximately 1.4 Gigawatts of Renewable Electricity
LEHIGH
VALLEY, Pa. and ARLINGTON,
Va., Dec.
8, 2022 /PRNewswire/ -- 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 new facility will be, by far, the largest green hydrogen facility
in the U.S. to use wind and sun as energy sources.
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 AESi 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.
i Alberta Investment Management Company (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.
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