Air Products and Chemicals Inc.
) and its unit Air Products Canada Ltd. recently announced the
signing of a long-term contract with North West Redwater
Partnership. Under the terms of this contract, the company will
supply around 25 million standard cubic feet per day (MMSCFD)
hydrogen to North West's Sturgeon Refinery near Edmonton,
Alberta, Canada. The market reacted positively to the news and
Air Products' shares rose as much as 1% following the
The supply of hydrogen will come from Air products' existing
Canada's Heartland Hydrogen Pipeline as well as the new
world-scale hydrogen production plant Air Products Canada will
construct in Scotford, Canada. This new plant will be
constructed, owned and operated by the company and located
adjacent to Shell Canada's Scotford facility, northeast of
Edmonton, Alberta. More than 150 million standard cubic feet per
day (MMSCFD) of hydrogen is expected to be produced by the
The Scotford facility will be connected to Air Products
Canada's existing Heartland Hydrogen Pipeline system, which
supplies refiners, upgraders, chemical processors and other
industries in the Alberta Industrial Heartland region. Air
Products' 30-mile hydrogen pipeline is fed by two existing
hydrogen production plants in Edmonton that produce over 180
MMSCFD of hydrogen. The company's hydrogen pipeline system will
provide a reliable source of hydrogen to the refineries,
upgraders and other customers in the Heartland region where the
demand for hydrogen is high.
The Scotford hydrogen plant will be built through an alliance
between Air Products and Technip. The plant will have up-to-date
technologies installed for reduction of energy consumption and
emissions. It will also include optimal heat integration for
lowering feedstock consumption during production.
Air products' contract with North West is expected to become
operational by 2016, once the Scotford plant comes online. It
remains committed to producing cleaner burning transportation
fuel in the North West region.
Air Products currently holds a Zacks Rank #2 (Buy).
Other companies in the chemical industry worth considering are
). All of them hold a Zacks Rank #2 (Buy).
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