Trexlertown’s Air Products continues to show its global scale, this time as a partner in a $5 billion green fuel plant that will be developed in an in-progress futuristic city in Saudi Arabia that aims to be a model for urban sustainability.
Air Products on Tuesday announced an agreement for the green hydrogen-based ammonia production facility that will be powered by renewable energy. The project will be equally owned by Air Products, ACWA Power of Saudi Arabia and Neom, which is the name of the futuristic place — “Neom” is a combination of Greek and Arabic meaning “new future” — located in the northwest corner of Saudi Arabia on the Red Sea.
The plant is scheduled to be operating in 2025 and will produce green ammonia. Air Products will be the “exclusive off-taker” of the green ammonia, which will be exported around the world to produce green hydrogen for the transportation market.
On top of Air Products’ one-third ownership of the $5 billion plant, the industrial gases giant also plans to invest roughly $2 billion to handle distribution to end customers. That brings Air Products’ total investment in the project to about $3.7 billion.
In a news release, Air Products Chairman, President, and CEO Seifi Ghasemi said the project will harness Neom’s sun and wind to convert water to hydrogen, yielding a clean source of energy that will save more than 3 million tons of carbon dioxide emissions annually. In addition, he said, it will eliminate smog-forming emissions and other pollutants from the equivalent of more than 700,000 cars.
“We are honored and proud to partner with ACWA Power and Neom and use proven technologies to make the world’s dream of 100% green energy a reality,” said Ghasemi, who recently had his contract with Air Products extended through Sept. 30, 2025.
Air Products said the project builds on its strategy of investing in energy, environmental and emerging markets. In the United States, Air Products pointed out other investments that fit that criteria, including an announcement in January that the company would invest $500 million — its largest-ever investment for one U.S. project — to build, own and operate a hydrogen-production facility along the Gulf Coast.
Air Products operates in around 50 countries and employs 17,000 people globally, including about 2,000 in the Lehigh Valley, where it is building a $400 million corporate campus in Upper and Lower Macungie townships.
Air Products, one of the area’s two Fortune 500 companies — Allentown’s PPL Corp. is the other — came in at No. 355 on this year’s list, down 11 spots from the prior year. The company logged $8.9 billion in revenue in its 2019 fiscal year.
Article: Morning Call