One of the Largest Green Hydrogen Projects in the World: thyssenkrupp Signs Contract to Install Over 2GW Electrolysis Plant for Air Products in NEOM
Air Products (NYSE: APD) has awarded thyssenkrupp Uhde Chlorine Engineers a contract for a 2 GW electrolysis plant as part of the NEOM green hydrogen project in Saudi Arabia. This facility will produce hydrogen for carbon-free ammonia synthesis, to be exported by Air Products. Initial engineering and procurement are underway, with production expected to start in 2026. This project represents a significant milestone in Air Products' strategy for sustainable energy solutions and aims at addressing global environmental challenges.
- Contract awarded for 2 GW electrolysis plant for green hydrogen production.
- Part of a large-scale green hydrogen project in Saudi Arabia, increasing Air Products' presence in the renewable energy sector.
- Production expected to start in 2026, indicating long-term revenue potential.
- Collaboration with thyssenkrupp enhances technological capabilities in hydrogen production.
- Long lead time until production starts in 2026, delaying potential revenue generation.
- Dependence on successful execution and scaling of technology by thyssenkrupp.
LEHIGH VALLEY, Pa., Dec. 13, 2021 /PRNewswire/ -- Air Products (NYSE:APD) has awarded thyssenkrupp Uhde Chlorine Engineers a contract to supply a more than two-gigawatt (2 GW) electrolysis plant for one of the world's largest green hydrogen projects at NEOM in Saudi Arabia. Under this contract, thyssenkrupp will engineer, procure and fabricate the plant based on their large-scale 20 megawatt (MW) alkaline water electrolysis module. Upon commissioning, the project partners ― NEOM, ACWA Power and Air Products ("NEOM Green Hydrogen Company") ― will operate the facility, which will produce hydrogen to be synthesized into carbon-free ammonia for export exclusively by Air Products to global markets. Engineering and procurement activities have been initiated, and the start of production is scheduled for 2026.
Strong partnership with strong sustainability lever
In July 2020, Air Products, together with ACWA Power and NEOM, announced the signing of an agreement for world-scale green hydrogen-based ammonia production facility powered by renewable energy. thyssenkrupp was selected by its strategic partner Air Products early in the project as technology supplier and has worked intensively on early engineering and project development. The signing of the project contract is a key milestone of both companies' joint effort over the past year to use their complementary technology, engineering and project execution strengths to develop green hydrogen production facilities. The realization of the project leverages thyssenkrupp's large-scale technology supporting Air Products' development of green hydrogen for sustainable transportation, chemicals and power generation.
Dr. Samir J. Serhan, Chief Operating Officer at Air Products, says: "This project milestone with thyssenkrupp furthers our strong progress at NEOM to deliver carbon-free hydrogen on a massive scale in the Kingdom and for the world. The development and execution of this innovative megaproject is one of many required to drive a successful energy transition, and we look forward to continuing to develop, build, own and operate facilities that help address the world's significant energy and environmental challenges. This project is the kickoff to become a frontrunner in the green hydrogen economy."
"As a world market leader in electrolysis we bring in two decisive factors to realize such gigawatt projects: With our large-scale standard module size and gigawatt cell manufacturing capacity per year together with our Joint Venture partner De Nora we are able to deliver large capacity projects today," says Denis Krude, CEO of thyssenkrupp Uhde Chlorine Engineers. "With this gigawatt project, we are committed to invest into ramping up our manufacturing capacities further. We also aim for a strong local setup which is key to delivering customized service solutions throughout the entire plant life-cycle and enables our strategic partner in their vision to become a global decarbonization pioneer."
About thyssenkrupp Uhde Chlorine Engineers
thyssenkrupp Uhde Chlorine Engineers offers world-leading technologies for high-efficiency electrolysis plants. The company, a Joint Venture with Industrie De Nora, has extensive in-depth knowledge in the engineering, procurement, and construction of electrochemical plants and a strong track record of more than 600 projects with a total rating of over 10 gigawatts already successfully installed. With its water electrolysis technology to produce green hydrogen, the company offers an innovative solution on an industrial scale for green value chains and an industry fueled by clean energy – a major step towards a climate-neutrality.
About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including: gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals; carbon capture projects; and world-scale carbon-free hydrogen projects supporting global transportation and the energy transition.
The Company had fiscal 2021 sales of
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 risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. 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.
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SOURCE Air Products; thyssenkrupp Uhde Chlorine Engineers
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