Air Products to Invest About $500 Million to Build Green Hydrogen Production Facility in New York

94-Megawatt Hydroelectric Power Allocation Already Approved

LEHIGH VALLEY, Pa., Oct. 6, 2022 /PRNewswire/ -- Air Products (NYSE: APD), the world leader in hydrogen production and a first mover developing and executing low carbon hydrogen megaprojects driving the energy transition, today announced plans to invest approximately $500 million to build, own and operate a 35 metric ton per day facility to produce green liquid hydrogen at a greenfield site in Massena, New York, as well as liquid hydrogen distribution and dispensing operations. The commercial operation of this facility is targeted to begin in 2026-2027.

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In support of this Air Products project, in July 2022, the New York Power Authority (NYPA) board approved 94 MW of low-cost St. Lawrence hydroelectric power to Air Products for its significant investment and the creation of 90 jobs in New York State. This project supports New York State's goal of becoming a Regional Clean Energy Hydrogen Hub, as announced by Governor Kathy Hochul in March 2022. New York's hydrogen hub ambitions directly support the goals of the State's Climate Leadership and Community Protection Act.

Air Products has determined that the market demand warrants the investment in the project, assuming the receipt of certain local and state incentives, as well as any benefits from the Inflation Reduction Act (IRA), and which are anticipated in the current project budget.

Further to this proposed facility announcement, Air Products is also investigating the feasibility of establishing a hydrogen fueling station network in the United States' northeast region, including the ability to serve Air Products' truck fleet. Air Products has announced plans to convert its global fleet of approximately 2,000 trucks to hydrogen fuel cell zero-emission vehicles.

"We are very pleased to announce this proposed project as this shows our commitment to work closely with New York State to support its energy transition program by making real investments and creating highly paid jobs with our Massena green hydrogen project. This project is another demonstration of our leadership role in the low-carbon hydrogen and the hydrogen for mobility markets, and New York State's and IRA incentives will continue to encourage hydrogen's key role and our investment in the energy transition," said Air Products' Chairman, President and Chief Executive Officer, Seifi Ghasemi.

NYPA Interim President and CEO, Justin E. Driscoll, said, "In supporting Air Products' expansion in Massena, NYPA is furthering New York's aggressive climate goals and helping to advance the state's vision of becoming a regional hydrogen hub. The St. Lawrence-FDR Power Project is a critical economic development catalyst in the region — and around the state — and we are pleased to leverage its clean hydropower to strengthen the North Country's economy."

The low-carbon intensity liquid hydrogen product from the facility is expected to be sold to the mobility market in New York State as well as other potential northeast industrial markets. If all the hydrogen is used for the heavy-duty truck market, future climate benefits over the project's lifetime would include avoiding more than six million tonnes of carbon dioxide (CO2), which is equivalent to the emissions from over 600 million gallons of diesel used in heavy-duty trucks.

Demand for green hydrogen for mobility and industrial applications is expected to grow significantly in the northeast as a result of the New York-led multi-state agreement to develop a proposal to become one of the regional clean hydrogen hubs designated through the federal Clean Hydrogen Hubs Program, and New York State's adoption of a new Advanced Clean Trucks (ACT) rule. New York State's Climate Leadership and Community Protection Act targets include: 40 percent greenhouse gas (GHG) reductions below 1990 levels by 2030, a carbon free electricity system by 2040, and an 85 percent reduction in GHGs below 1990 levels by 2050.

About Air Products

Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 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 low- and zero-carbon hydrogen projects supporting global transportation and the energy transition.

The Company had fiscal 2021 sales of $10.3 billion from operations in over 50 countries and has a current market capitalization of about $55 billion. More than 20,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.

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.

SOURCE Air Products