Air Products spending $500M to build hydrogen production facility in NY

October 7, 2022, by Ajsa Habibic

Industrial gas supplier Air Products has revealed 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.

The company’s plans also include liquid hydrogen distribution and dispensing operations with the commercial operation of the facility targeted for 2026-2027.

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.

The New York Power Authority (NYPA) board has already supported the project by approving 94 MW of low-cost St. Lawrence hydroelectric power to Air Products for its investment.

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.

In addition to this proposed facility, 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 to support the 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”, said Air Products’ chairman, president and CEO, Seifi Ghasemi.

“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.”