Air Products, AES to build USD-4bn green hydrogen plant in Texas

US industrial gases company Air Products (NYSE:APD) and US power company The AES Corp (NYSE:AES) will invest USD 4 billion (EUR 3.8bn) to build a green hydrogen plant in Wilbarger County, Texas that will be the largest in the US, the companies said on Thursday.

The project will feature 1.4 GW of wind and solar power arrays and electrolysers with the capacity to produce more than 200 tonnes of green hydrogen per day. It will be jointly and equally owned by Air Products and AES, while Air Products will also offtake and market the green hydrogen under a 30-year contract.

Intended to start commercial operations in 2027, the project will cater to the growing demand for clean fuels for the mobility market, as well as other industrial markets, the companies said.

“The new facility in Texas will be, by far, the largest mega-scale clean hydrogen production facility in the US to use wind and sun as energy sources,” Air Products’ chairman, president and chief executive Seifi Ghasemi said, adding that it will be competitive on a world-scale.

Air Products, a major hydrogen producer globally, and AES have been working on the project’s development for many years, according to the announcement. The project will leverage AES’ experience as a renewable energy developer and its expertise in innovative technologies such as energy storage.

"AES believes that green hydrogen has a key role to play in decarbonizing transportation and accelerating the future of energy," said the company’s president and chief executive Andres Gluski.

(USD 1 = EUR 0.950)

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