Air Products' Phase One Carbon Capture Project Onstream in Texas

Mon Jan 28, 2013 10:30am EST

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LEHIGH VALLEY, Pa.,  Jan. 28, 2013  /PRNewswire/ -- Described by the United
States Department of Energy (DOE) as a milestone in DOE's Industrial Carbon
Capture and Storage (ICCS) program, Air Products (NYSE: APD) announced today
that Phase One of its two stage carbon capture project in  Port Arthur, Texas 
is onstream.  Ultimately, the project will capture approximately one million
tons of carbon dioxide (CO2) annually to be recovered, purified by Air Products,
and transported by Air Products via a pipeline owned by Denbury Green
Pipeline-Texas, LLC for injection into the Denbury Onshore operated West
Hastings Unit, an enhanced oil recovery project in Texas.   

Air Products designed, constructed, and is now operating Phase One of a
state-of-the-art system to capture CO2  from one of its steam methane reformers
(SMR) located within the Valero Port Arthur Refinery.  The CO2 removal
technology has been retrofitted to the SMR, which produces  hydrogen  to assist
in the making of cleaner burning transportation fuels by  refinery  customers on
Air Products' Gulf Coast hydrogen pipeline network.  Phase Two, involving a
second Air Products' SMR at the site, is to be onstream in  April 2013.

"We have successfully launched Phase One and would like to congratulate all of
our project collaborators on the achievement.  We are now focused on getting
Phase Two onstream and completing the project as designed.  This novel and
technology-leading project would not have occurred without the support and
involvement of DOE," said  Wilbur Mok, vice president, North America Tonnage
Gases for Air Products.   

DOE stated in  its announcement  that, "This event marks a milestone in DOE's
ICCS program: progressing beyond research and development to a demonstration
scale that can be readily replicated and deployed into commercial practice
within the industry. Goals of the ICCS program are to mitigate climate change
through carbon capture, utilization and storage; create jobs; and position  the
United States  as a world leader in carbon-capture technologies."  

DOE provided a significant portion of the funding (66%) for the over  $400
million  project.  In  June 2010, Air Products was selected to receive  $253
million  in funding from DOE through the National Energy Technology Laboratory
under the ICCS Program, which is funded by the American Recovery and
Reinvestment Act (ARRA) for this project.  It later received an additional  $30
million  from DOE through the ARRA for final engineering, design, construction,
and project operation through  September 2015. Air Products' project was the
only industrial gas company led undertaking selected by DOE, and one of only
three projects receiving additional funding towards a commercial demonstration
project.  

DOE has estimated that Air Products' Port Arthur Project will assist in the
recovery of 1.6-3.1 million additional barrels of domestic oil annually. DOE's
announcement stated that when an oil well begins "playing out," not enough oil
is pumped to make it worthwhile to continue using the well, and the well is
closed or "shut-in," even though much of the original oil in the field remains
in the formation. Several methods of  enhanced oil recovery  have been developed
to recover this remaining oil, including pumping CO2  down to the oil reservoir.
In the  Port Arthur  project, a monitoring, verification, and accounting program
will ensure that the injected CO2  remains underground, safely and permanently
trapped in the same geologic formation that confined the oil brought to the
surface in the demonstration.  

Air Products'  Port Arthur  hydrogen production facility hosting the CO2 
project is part of its industry-leading Gulf Coast hydrogen plant and pipeline
supply network,  the world's largest system of its kind, serving multiple
refinery and petrochemical operations in the region.  The pipeline stretches
from the Houston Ship Channel in  Texas  to  New Orleans, Louisiana. In August
it began supplying over 1.2 billion cubic feet of hydrogen per day to refinery
and petrochemical customers. Air Products had operated two hydrogen pipeline
systems in  Texas  and  Louisiana  before joining them with the new 180-mile
segment. The 600-mile pipeline span is fed by over 20 Air Products hydrogen
production facilities. Hydrogen is widely used in petroleum refining processes
to remove impurities found in crude oil such as sulfur, olefins and aromatics to
meet the product fuels specifications.

Air Products has worked on several carbon capture and sequestration (CCS)
projects around the world for the power market.  These projects include:

* The world's first full demonstration of oxyfuel CCS with Vattenfall AB, one of
 Europe's leading energy companies.  Air Products installed its proprietary CO2 
capture, purification, and compression system at Vattenfall's research and
development facility in Schwarze Pumpe,  Germany, which is viewed globally as
the preeminent CO2  oxyfuel project.  
* In collaboration with the Alberta Energy Research Institute, a study focusing
on advanced CO2  capture technology for use with gasification.   
* In cooperation with DOE, Air Products designed and constructed a CO2 
purification system in support of an oxyfuel technology development project at a
boiler-simulation facility in  Windsor, Connecticut.   
* Air Products demonstrated oxyfuel sour compression technology in experimental
work carried out by Imperial College London with flue gas from a 160 kilowatt
coal-fired combustion installation at Doosan Babcock's facility in  Renfrew, 
Scotland, as part of the Oxycoal-UK Project.

Details on Air Products' CO2  purification technologies can be found at 
http://www.airproducts.com/microsite/carbon_capture/index.asp.

Additional details on Air Products' expertise in hydrogen production and supply
can be found at  http://www.airproducts.com/microsite/h2-pipeline/.

About Air Products
Air Products (NYSE: APD) provides atmospheric, process and specialty gases;
performance materials; equipment; and technology. For over 70 years, the company
has enabled customers to become more productive, energy efficient and
sustainable. More than 20,000 employees in over 50 countries supply innovative
solutions to the energy, environment and emerging markets. These include
semiconductor materials, refinery hydrogen, coal gasification, natural gas
liquefaction, and advanced coatings and adhesives. In fiscal 2012, Air Products
had sales of approaching  $10 billion. For more information, visit 
http://www.airproducts.com/.  

NOTE: This release may contain 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 reasonable expectations and
assumptions as of the date of this release regarding important risk factors.
Actual performance and financial results may differ materially from projections
and estimates expressed in the forward-looking statements because of many
factors not anticipated by management, including risk factors described in the
Company's Form 10K for its fiscal year ended  September 30, 2012.   

SOURCE  Air Products


Media Inquiries: (Air Products) Art George, +1-610-481-1340,
georgeaf@airproducts.com, (DOE) Jenny Hakun, FE Office of Communications,
+1-202-586-5616, or (Denbury) Jack Collins, +1-972-673-2028,
jack.collins@denbury.com; or Investor Inquiries: (Air Products) Simon Moore,
+1-610-481-7461, mooresr@airproducts.com

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