Air Products, AES announce $4bn green hydrogen project in Texas

Industrial gases company Air Products and AES Corporation, an American utility and power generation company, have joined forces to construct a new green hydrogen project in Wilbarger County, Texas.

As part of the collaboration, the companies are planning to invest around $4bn to build, own and operate the green hydrogen manufacturing plant.

The green hydrogen plant in Texas with more than 200 metric tons per day of green hydrogen will be powered by around 1.4GW of wind and solar energy.

It is anticipated to help meet increasing for zero-carbon intensity fuels for the mobility and other industrial markets as well as eliminate more than 50 million metric tons of CO2 over the project lifetime.

Air Products, AES announce $4bn green hydrogen project in Texas. Photo courtesy of CyberXRef/Wikipedia.org.

Seifi Ghasemi — Air Products Chairman, President, and CEO said: “The new facility in Texas will be, by far, the largest mega-scale clean hydrogen production facility in the U.S. to use wind and sun as energy sources.”

Air Products and AES will jointly and equally own the renewable energy and electrolyzer assets while the former will act as the exclusive off-taker and marketer of the green hydrogen as part of a 30-year agreement.

Andrés Gluski — AES President and CEO said: “We are very pleased to partner with the world leader in hydrogen, Air Products, for this first of its kind mega-scale green hydrogen facility in the United States.

“We will build more than 1 GW of new solar and wind facilities to provide zero carbon energy for electrolysis and related production facilities.

“AES believes that green hydrogen has a key role to play in decarbonizing transportation and accelerating the future of energy.”

Subject to local permits, and local, state and federal incentives, the green hydrogen project in Texas is scheduled to start commercial operations in 2027.