Air Products, AES to invest $4 bln in building largest U.S. green hydrogen plant

AES

08/12/2022 13:13

Dec 8 (Reuters) - Industrial gas supplier Air Products
 APD.N  and renewable energy firm AES Corp  AES.N  said on
Thursday they would invest about $4 billion to build the largest
U.S. green hydrogen facility, amid rising demand for the clean
fuel. 
    The companies aim to start commercial operations by 2027 at
the Texas facility, which will be capable of producing over 200
metric tons of green hydrogen per day. A spokesperson for AES
said the investment will be shared equally between the two
companies.
    Air Products, which had sales of $12.7 billion in fiscal
2022, will serve as the exclusive acquirer and marketer of the
green hydrogen from the plant under a 30-year deal. 
    AES and Air Products will have equal ownership of the
plant's renewable energy and electrolyzer assets, which help
break water into hydrogen and oxygen, they added.
    There has been an uptick in demand for green hydrogen,
produced using renewable energy, which could include offshore
wind and solar, to power electrolysis plants. 
    "We will build more than 1 GW (Gigawatt) of new solar and
wind facilities to provide zero carbon energy for electrolysis
and related production facilities," AES Chief Executive Officer
Andrés Gluski said.
 (Reporting by Priyamvada C in Bengaluru;
Editing by Vinay Dwivedi)
 ((Priyamvada.C@thomsonreuters.com https://twitter.com/priyamouli1812?lang=en;))