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Air Products' Phase One Carbon Capture Project Onstream in Texas



       Air Products' Phase One Carbon Capture Project Onstream in Texas

PR Newswire

LEHIGH VALLEY, Pa., Jan. 28, 2013

LEHIGH VALLEY, Pa., Jan. 28, 2013 /PRNewswire/ -- Described by the United
States Department of Energy (DOE) as a milestone in DOE's Industrial Carbon
Capture and Storage (ICCS) program, Air Products (NYSE: APD) announced today
that Phase One of its two stage carbon capture project in Port Arthur, Texas
is onstream.  Ultimately, the project will capture approximately one million
tons of carbon dioxide (CO[2]) annually to be recovered, purified by Air
Products, and transported by Air Products via a pipeline owned by Denbury
Green Pipeline-Texas, LLC for injection into the Denbury Onshore operated West
Hastings Unit, an enhanced oil recovery project in Texas. 

Air Products designed, constructed, and is now operating Phase One of a
state-of-the-art system to capture CO[2] from one of its steam methane
reformers (SMR) located within the Valero Port Arthur Refinery.  The CO[2
]removal technology has been retrofitted to the SMR, which produces hydrogen
to assist in the making of cleaner burning transportation fuels by refinery
customers on Air Products' Gulf Coast hydrogen pipeline network.  Phase Two,
involving a second Air Products' SMR at the site, is to be onstream in April
2013.

"We have successfully launched Phase One and would like to congratulate all of
our project collaborators on the achievement.  We are now focused on getting
Phase Two onstream and completing the project as designed.  This novel and
technology-leading project would not have occurred without the support and
involvement of DOE," said Wilbur Mok, vice president, North America Tonnage
Gases for Air Products. 

DOE stated in its announcement that, "This event marks a milestone in DOE's
ICCS program: progressing beyond research and development to a demonstration
scale that can be readily replicated and deployed into commercial practice
within the industry. Goals of the ICCS program are to mitigate climate change
through carbon capture, utilization and storage; create jobs; and position the
United States as a world leader in carbon-capture technologies."

DOE provided a significant portion of the funding (66%) for the over $400
million project.  In June 2010, Air Products was selected to receive $253
million in funding from DOE through the National Energy Technology Laboratory
under the ICCS Program, which is funded by the American Recovery and
Reinvestment Act (ARRA) for this project.  It later received an additional $30
million from DOE through the ARRA for final engineering, design, construction,
and project operation through September 2015. Air Products' project was the
only industrial gas company led undertaking selected by DOE, and one of only
three projects receiving additional funding towards a commercial demonstration
project.

DOE has estimated that Air Products' Port Arthur Project will assist in the
recovery of 1.6-3.1 million additional barrels of domestic oil annually. DOE's
announcement stated that when an oil well begins "playing out," not enough oil
is pumped to make it worthwhile to continue using the well, and the well is
closed or "shut-in," even though much of the original oil in the field remains
in the formation. Several methods of enhanced oil recovery have been developed
to recover this remaining oil, including pumping CO[2] down to the oil
reservoir. In the Port Arthur project, a monitoring, verification, and
accounting program will ensure that the injected CO[2] remains underground,
safely and permanently trapped in the same geologic formation that confined
the oil brought to the surface in the demonstration.

Air Products' Port Arthur hydrogen production facility hosting the CO[2]
project is part of its industry-leading Gulf Coast hydrogen plant and pipeline
supply network, the world's largest system of its kind, serving multiple
refinery and petrochemical operations in the region.  The pipeline stretches
from the Houston Ship Channel in Texas to New Orleans, Louisiana. In August it
began supplying over 1.2 billion cubic feet of hydrogen per day to refinery
and petrochemical customers. Air Products had operated two hydrogen pipeline
systems in Texas and Louisiana before joining them with the new 180-mile
segment. The 600-mile pipeline span is fed by over 20 Air Products hydrogen
production facilities. Hydrogen is widely used in petroleum refining processes
to remove impurities found in crude oil such as sulfur, olefins and aromatics
to meet the product fuels specifications.

Air Products has worked on several carbon capture and sequestration (CCS)
projects around the world for the power market.  These projects include:

  o The world's first full demonstration of oxyfuel CCS with Vattenfall AB,
    one of Europe's leading energy companies.  Air Products installed its
    proprietary CO[2] capture, purification, and compression system at
    Vattenfall's research and development facility in Schwarze Pumpe, Germany,
    which is viewed globally as the preeminent CO[2] oxyfuel project.
  o In collaboration with the Alberta Energy Research Institute, a study
    focusing on advanced CO[2] capture technology for use with gasification. 
  o In cooperation with DOE, Air Products designed and constructed a CO[2]
    purification system in support of an oxyfuel technology development
    project at a boiler-simulation facility in Windsor, Connecticut. 
  o Air Products demonstrated oxyfuel sour compression technology in
    experimental work carried out by Imperial College London with flue gas
    from a 160 kilowatt coal-fired combustion installation at Doosan Babcock's
    facility in Renfrew, Scotland, as part of the Oxycoal-UK Project.

Details on Air Products' CO[2] purification technologies can be found at
http://www.airproducts.com/microsite/carbon_capture/index.asp.

Additional details on Air Products' expertise in hydrogen production and
supply can be found at http://www.airproducts.com/microsite/h2-pipeline/.

About Air Products
Air Products (NYSE: APD) provides atmospheric, process and specialty gases;
performance materials; equipment; and technology. For over 70 years, the
company has enabled customers to become more productive, energy efficient and
sustainable. More than 20,000 employees in over 50 countries supply innovative
solutions to the energy, environment and emerging markets. These include
semiconductor materials, refinery hydrogen, coal gasification, natural gas
liquefaction, and advanced coatings and adhesives. In fiscal 2012, Air
Products had sales of approaching $10 billion. For more information, visit
http://www.airproducts.com/.  

NOTE: This release may contain forward-looking statements within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on management's reasonable
expectations and assumptions as of the date of this release regarding
important risk factors. Actual performance and financial results may differ
materially from projections and estimates expressed in the forward-looking
statements because of many factors not anticipated by management, including
risk factors described in the Company's Form 10K for its fiscal year ended
September 30, 2012. 

SOURCE Air Products

Website: http://www.airproducts.com
Contact: Media Inquiries: (Air Products) Art George, +1-610-481-1340,
georgeaf@airproducts.com, (DOE) Jenny Hakun, FE Office of Communications,
+1-202-586-5616, or (Denbury) Jack Collins, +1-972-673-2028,
jack.collins@denbury.com; or Investor Inquiries: (Air Products) Simon Moore,
+1-610-481-7461, mooresr@airproducts.com
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