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Air Products' New Texas Hydrogen Plant On-Stream and Supplying Customers

Air Products' newest hydrogen production facility in Port Arthur, Texas, is on-stream and supplying Valero Energy Corp's Port Arthur Refinery and additional customers on its industry-leading Gulf Coast hydrogen pipeline system. This plant is the sixth North American hydrogen facility brought on-stream in 2006 by Air Products, the leading global hydrogen supplier, and the fourth in the U.S. These hydrogen facilities assist in the production of cleaner transportation fuels.

"We are very pleased to have commissioned our second facility at Port Arthur and to provide Valero and our Gulf Coast hydrogen pipeline customers high-purity hydrogen. It has been a very busy and successful year in terms of bringing new plants on-stream in both the U.S. and Canada," said Jeffry L. Byrne, Air Products' vice president and general manager for Tonnage Gases. Air Products' other hydrogen facility at Port Arthur has been operating since 2001.

In addition to Port Arthur in 2006, Air Products brought on-stream hydrogen production facilities at Baytown, Texas; Convent, Louisiana; and Joliet, Illinois. Air Products also placed on-stream the largest outsourced hydrogen production facilities in Canada near Edmonton, Alberta and in Sarnia, Ontario. In 2006, Air Products has increased hydrogen production capacity by over 450 million standard cubic feet per day (MMSCFD). The company also announced plans for a second Edmonton, Alberta facility to be on-stream in 2008 and be the first commercial plant in Canada to provide the sale of hydrogen for use in the upgrading of Canadian oil sands.

The Port Arthur hydrogen facility is part of Air Products' Gulf Coast pipeline network, which extends from the Houston Ship Channel in Texas to Lake Charles, La., and from Baton Rouge to Norco, La., and east of New Orleans. This pipeline network provides a very highly reliable hydrogen supply to approximately 50 refinery and process industry customers. "We have increased our Gulf Coast pipeline system capacity to over 900 MMSCFD of hydrogen with recently completed projects, and we will continue to increase the size of our Gulf Coast hydrogen system in a manner that is consistent with the needs of our key refining and petrochemical customers," said Byrne.

The supply arrangement is one of over 30 that Air Products has undertaken with refiners worldwide, and the Texas hydrogen facility is the 27th to be built under the global alliance between Air Products and Technip. This alliance continues to provide the worldwide refining industry with competitive technology, plus world-class safety with "over the fence" hydrogen supply. Technip provides the design and construction expertise for steam reformers while Air Products provides the gas separation technology. Air Products, through its extensive operating network, and Technip, from its large reference base, also bring effective operational and engineering knowledge to "design- in" high reliability and efficiency. The plants are operated and maintained by Air Products under long-term agreements with customers.

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