Set to produce over 200 tonnes of green hydrogen per day, the two companies claim it will be the largest green hydrogen facility in the US and the project is targeted to begin commercial operations in 2027.
Set to include approximately 1.4GW of wind and solar power generation to run electrolysers, Air Products and AES will invest $4b to build, own and operate the production facility.
Andrés Gluski, President and Chief Executive Officer at AES, stated, “We are pleased to partner with the world leader in hydrogen, Air Products, for this first of its kind mega-scale facility in the US
“AES believes that green hydrogen has a key role to play in decarbonising transportation and accelerating the future of energy.”
Air Products and AES will jointly and equally own the renewable energy and electrolyser assets, with the latter serving as the exclusive off-taker and marketer of the green hydrogen under a 30-year contract.
Over the projects lifetime it is expected to avoid more than 50 million tonnes of carbon dioxide, which the partners say is the equivalent of avoiding emissions from nearly five billion gallons of diesel fuel.
It will generate a clean source of energy and if all green hydrogen were used in the heavy-duty market, it would eliminate more that 1.6 million tonnes of carbon dioxide emissions annually when compared to diesel use in heavy-duty trucks.
The demand for green hydrogen for mobility and industrial applications is expected to grow over the next decade in the US.
Seifi Ghasemi, Chairman, President and Chief Executive Officer at Air Products, commented, “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.”
The project would create more than 1,300 construction jobs, 115 permanent operations jobs as well as around 200 transportation and distributions roles.
On top of this, it is expected to generate approximately $500m in tax benefits to the state of Texas over the course of the project’s lifetime, also extending Texas’ energy leadership.
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