Air Products Celebrates Texas Carbon Capture Demonstration Project Achievement

Air Products Celebrates Texas Carbon Capture Demonstration Project Achievement

Captured CO2 Increases U.S. Natural Resource Output At Enhanced Oil Recovery

PR Newswire

LEHIGH VALLEY, Pa., May 10, 2013

LEHIGH VALLEY, Pa., May 10, 2013 /PRNewswire/ --Air Products (NYSE: APD)
today celebrated the successful operation of a United States Department of
Energy (DOE) Demonstration Project that will capture approximately one million
tons of carbon dioxide (CO[2]) in an enhanced oil recovery project in which
DOE anticipates an additional estimated 1.6-3.1 million barrels of oil to be
produced annually from the CO[2] injection. This unprecedented achievement
comes by way of an Air Products innovative technology, is the
first-of-its-kind operating at such a large scale, and has not been
accomplished anywhere else in the United States.

Described by the DOE as a milestone in its Industrial Carbon Capture and
Storage (ICCS) program, Air Products' carbon capture project in Port Arthur,
Texas recovers and purifies the CO[2], all of which is then transported in its
gaseous state 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 is very proud to celebrate this Demonstration Project's success.
When you define projects that could be a model of sustainability, it doesn't
get much better than this effort in taking a vented greenhouse gas and
capturing it, cleaning it up, and sequestering it in the process of increasing
the output of a valuable domestic natural resource like crude oil," said Jeff
Byrne, vice president and general manager – Tonnage Gases at Air Products.

"We have worked hard to build our reputation for successfully executing large
scale industrial projects and bringing them onstream, on time and budget. We
did just that, here at Port Arthur, using a new patent-protected technology
that we developed. At the same time, this novel and technology-leading
Demonstration Project would not have been achievable without the support and
involvement of DOE," he said.

Air Products designed, constructed, and is now operating the state-of-the-art
system to capture CO[2] from its steam methane reformers (SMR) located within
the Valero Port Arthur Refinery. The CO[2 ]removal technology was retrofitted
to the SMRs, which produce hydrogen to assist in the making of cleaner burning
transportation fuels by refinery customers on Air Products' Gulf Coast
hydrogen pipeline network. Hydrogen is widely used in petroleum refining
processes to remove impurities found in crude oil such as sulfur, olefins and
aromatics to meet product fuels specifications.

Incidentally, Air Products' Gulf Coast hydrogen plant and pipeline supply
network is the world's largest system of its kind. The pipeline stretches from
the Houston Ship Channel in Texas to New Orleans, Louisiana. The 600-mile
pipeline span is fed by over 20 Air Products' hydrogen production facilities
and provides over 1.2 billion cubic feet of hydrogen per day to refinery and
petrochemical customers.

DOE had previously stated 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

The DOE has estimated that Air Products' Port Arthur Project will assist in
the recovery of 1.6-3.1million additional barrels of domestic oil annually.
DOE has 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. A primary purpose of the DOE project is, however, the monitoring,
verification, and accounting program to 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 has also worked on several carbon capture and sequestration (CCS)
projects around the world for the power market. These projects include:

  oThe 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 facility in Schwarze Pumpe, Germany, viewed globally as the
    preeminent CO[2] oxyfuel project.
  oIn collaboration with the Alberta Energy Research Institute, a study
    focused on advanced CO[2] capture technology for use with gasification.
  oIn cooperation with DOE, Air Products designed and constructed a CO[2]
    purification system in support of oxyfuel technology development at a
    boiler-simulation facility in Connecticut.
  oAir Products demonstrated oxyfuel sour compression technology in work by
    Imperial College London with flue gas from a 160 kilowatt coal-fired
    combustion installation at Doosan Babcock's facility in Scotland, as part
    of the Oxycoal-UK Project.

Details on Air Products' CO[2] purification technologies can be found at

Additional details on Air Products' expertise in hydrogen production and
supply can be found at

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 approaching $10 billion. For more information, visit

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

Contact: Media, (Air Products), Art George, tel: (610) 481-1340; e-mail:, (DOE), Jenny Hakun, FE Office of Communications,
tel: (202) 586-5616, (Denbury), Jack Collins, tel: (972) 673-2028; e-mail:, or Investor, (Air Products), Simon Moore, tel: (610)
481-7461; e-mail:
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