Industrial gases giant
Air Products and Chemicals
) has entered into a hydrogen and nitrogen supply contract with
). Air Products will provide ArcelorMittal with three PRISM
PHG100 hydrogen gas generators (PHG) and a high-purity PRISM
GN700 nitrogen generator for the latter's Saint Chely d'Apcher
plant located in Southern France.
Air Products supplies and produces hydrogen on-site through a
range of compact and low- to medium-capacity steam methane
reformers (SMR). The SMR technology efficiently and economically
converts steam and lighter hydrocarbons, like methane, into
hydrogen and carbon monoxide.
PRISM PHG generator is an alternative source of industrial gas
supply to trailers (bulk hydrogen) to customers in distant
locations. It also minimizes logistics costs and carbon footprint
related with regular truck rotations.
The three PRISM PHG100 hydrogen gas generators with on-site
modular concept help ArcelorMittal to operate at the required
capacity even when one of the generators is offline and thus the
remaining modules and backup storage ensure uninterrupted
These gas generators with favorable alternative solution are
preferred since Saint Chely d'Apcher plant is not suitable for
large amounts of gaseous hydrogen storage. Also, the installation
of these gas generators are both reliable and flexible as each
generator can operate at 50% capacity, thus offering flow rates
from 50 Nm3/h to 300 Nm3/h.
The plant's nitrogen requirements are met by PRISM cryogenic
generator that supplies nitrogen using a unique technology of
distillation to produce high-purity nitrogen. Along with the
generator, two nitrogen backup storage tanks and four vaporisers
have been installed to ensure a continuous supply of nitrogen gas
at the plant.
At the plant, hydrogen and nitrogen gases are used in the
electric engines and wind turbines to produce non-grain-oriented
electrical. This helps ArcelorMittal to increase its high-value
steel products' production at lower carbon dioxide emissions. The
on-site hydrogen production concept of Air Products also
contributes in ArcelorMittal's savings by enhancing plant
operations and reducing the start-up time.
The total design, fabrication, installation, technical support,
and telemetry service of the equipment are performed by Air
Products. Operational control of the entire system is performed
from Air Products' Operating Service Centre (OSC) in France
through experienced OSC operators who monitor critical metrics
all the time.
Air Product's fourth-quarter fiscal 2013 (ended Sep 30, 2013)
adjusted earnings from continued operations of $1.47 a share
increased 3.5% from the year-ago earnings of $1.42. However,
revenues declined 0.7% year over year to $2,586.5 million. The
decline was due to lower base volumes and a negative impact
resulting from the exit decision of the Polyurethane
Intermediates (PUI) business, partly offset by higher energy
pass-through and favorable currency translation.
For fiscal 2013, Air Products plans to take a number of steps
including execution against backlog, winning profitable new
projects, loading existing assets, and implementing further
productivity and cost initiative measures. The company expects
that its recent strategic moves will position it for future
growth and profitability and help to build momentum and
accelerate earnings growth despite the weak macroeconomic
Air Products currently holds a Zacks Rank #4 (Sell).
Other companies in the chemical industry worth considering
). Both carry a Zacks Rank #1 (Strong Buy).
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