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.
Media Inquiries:
Art George, tel:
(610) 481-1340; email: georgeaf@airproducts.com
Gail Chalef, tel: (571) 883-8804;
email: gail.chalef@aes.com
Investor Inquiries:
Simon Moore, tel:
(610) 481-7461; email: mooresr@airproducts.com
Susan Harcourt, tel: (703) 682-1204;
email: susan.harcourt@aes.com
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SOURCE AES CORP.