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 ALLENTOWN, Pa., Dec. 6 /PRNewswire/ -- Air Products and Chemicals, Inc. (NYSE: APD) has signed a letter of intent with Ultramar Inc. to design, engineer, and construct a steam reforming plant adjacent to Ultramar's Wilmington, Calif., refinery that will supply the customer with hydrogen.
 Air Products will operate the "on-site" plant under a long-term supply contract, assuming all operating and maintenance responsibilities. The plant -- which will represent a capital investment by Air Products in excess of $50 million -- will provide up to 50 million standard cubic feet per day (SCFD) of hydrogen for Ultramar's Clean Fuels Project. Spurred by the 1996 California Air Resource Board's requirements to produce cleaner burning fuel, this project is aimed at significantly reducing the sulfur, olefins, and aromatics content in the transportation fuels the refinery produces, which can be most effectively accomplished through the use of hydrogen processing. The hydrogen plant also will supply product via pipeline to third party customers in the Greater Los Angeles area. This supply arrangement with Ultramar would be the third on-site hydrogen supply project Air Products has undertaken for a West Coast refiner within the last two years.
 The Ultramar hydrogen plant will combine the operating and engineering expertise of Air Products and Kinetics Technology International Corporation (KTI) under their recently formed alliance, with KTI providing the steam reforming hydrogen plant technology and Air Products supplying the pressure swing adsorption (PSA) clean-up and control systems. Air Products will provide overall project management. Construction is expected to begin in early 1994, with an anticipated on- stream date of January 1996. Air Products and KTI signed an agreement last year to cooperate on hydrogen opportunities in excess of 10 million SCFD for refineries in the United States and Canada.
 Commenting on the new plant, William Haywood, Project Director for Ultramar's Clean Fuels Project, said, "We chose Air Products as our supplier because of its superior experience in the field and expertise in the design, operation, and maintenance of hydrogen production facilities." Haywood added, "Once the plant has been installed, Air Products will be responsible for managing our hydrogen supply, which will allow Ultramar to concentrate on the production and marketing of clean transportation fuels." Ultramar Inc., a subsidiary of Ultramar Corporation (NYSE: ULR), is a leading independent refining and marketing company in California.
 Air Products' extensive hydrogen experience includes the operation of 26 steam methane reforming (SMR) plants, 13 offgas hydrogen facilities, 6 hydrogen liquefiers, and three major hydrogen and carbon monoxide (HYCO) pipeline systems, making it the world's largest supplier of hydrogen. As a result, Air Products offers a broad line of hydrogen supply options including gaseous and liquid merchant hydrogen, pipeline supply, and dedicated on-site plants. The company is one of the world's leading suppliers of industrial gases, chemicals, process equipment, and environmental and energy systems. With headquarters in Allentown, Air Products has operations in 29 countries, 14,000 employees worldwide, and annual sales in excess of $3 billion.
 KTI is the leading supplier of hydrogen production facilities to the U.S. refining industry. In the last five years, the company has built 14 hydrogen plants in the U.S., each designed to produce more than 10 million SCFD of hydrogen. KTI employs more than 250 employees in the U.S., and is a subsidiary of Mannesmann AG, a $16 billion German industrial corporation.
 -0- 12/6/93
 /CONTACT: Jennifer A. Tordone of Air Products and Chemicals, 215-481-5302/

CO: Air Products and Chemicals, Inc.; Ultramar Inc.; Kinetics
 Technology International Corporation ST: Pennsylvania IN: CHM SU:

MK -- PH025 -- 0845 12/06/93 13:44 EST
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Publication:PR Newswire
Date:Dec 6, 1993

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