Air Products, a Pennsylvania-based industrial gases and chemicals producer, has completed the acquisition of five operating stream methane reformer (SMR) hydrogen production plants from PBF Energy for $530m.
The company has also started long-term supply of hydrogen from these plants to refineries of PBF.
The newly acquired hydrogen plants have combined capacity of nearly 300 million standard cubic feet per day and are located in Torrance and Martinez, California and Delaware City, Delaware.
Air Products chairman, president and CEO Seifi Ghasemi said: “We are very pleased that in close cooperation with our long-standing partner PBF, which is one of largest independent refiners in North America, that we have been able to close on this transaction in record time.
“We have now started supplying hydrogen to PBF from the five SMRs that we have purchased from them. This deal is an excellent example and demonstrates our ability to execute our strategy of investing in long-term onsite deals, which includes asset acquisitions like we have successfully closed. We look forward to a continued long-term relationship with PBF.”
Air Products operates five hydrogen plants in California
Air Products supplies hydrogen to refineries for producing cleaning burning transportation fuels. Hydrogen is widely used across petroleum refining processes to remove impurities found in crude oil.
Presently, the company operates 12 industrial gas facilities in California, which includes the five hydrogen production plants. The hydrogen produced at the plants will be used in producing ultra-low sulphur transportation fuels such as gasoline, diesel and jet fuel.
It also supplies hydrogen for fueling and fueling infrastructure in California to support the growing fleet of hydrogen fuel cell electric vehicles.
PBF Energy chairman and CEO Tom Nimbley said: “PBF Energy is pleased to have worked cooperatively with Air Products, a global leader in the supply of hydrogen to refineries, to complete this transaction and expand the long-term relationship between our two companies.”
