Published by Todd Bush on January 20, 2023
LEHIGH VALLEY, Pa., Jan. 20, 2023 /PRNewswire/ -- Air Products today announced financial close and transfer of the second group of assets for the $12 billion gasification and power joint venture (JV) with Aramco, ACWA Power and Air Products Qudra in the Jazan Economic City ("Jazan"), Saudi Arabia.
>> In Other News: U.S. Department of Energy Encourages Southeast Hydrogen Hub to Submit Full Application for Federal Funding
The JV's purchase of this second group of assets at Jazan follows the successful asset acquisition and project financing transactions for the first group of assets completed in late October 2021. Some minor final commissioning items are expected to be completed later this calendar year.
Seifi Ghasemi, Chairman, President and CEO of Air Products, said, "We are very proud to mark the close on the second group of assets at Jazan, a world-scale project that is a perfect fit with our growth strategy and which supports the Kingdom's Vision 2030. Consistent with our commitment, this will deliver significant contributions to our earnings going forward."
Approximately 40 percent of the JV's capital structure consists of member contributions, and the remaining 60 percent consists of non-recourse project financing.
The JV has purchased ASU, gasification, syngas cleanup, utilities and power assets from Aramco. The JV owns and operates the facility under a 25-year contract for a fixed monthly fee, with Aramco supplying feedstock to the JV, and the JV producing power, steam, hydrogen and other utilities for Aramco.
Aramco, via its subsidiary Saudi Aramco Power Company, has a 20 percent share in the JV; Air Products 46 percent; ACWA Power 25 percent; and Air Products Qudra (a 51/49 JV between Air Products and Qudra Energy) nine percent in the JV. Air Products' total ownership position is 50.6 percent through 46 percent direct ownership and 4.6 percent through Air Products Qudra.
The JV serves Aramco's Jazan Refinery, a megaproject to process 400,000 barrels per day of the crude oil to produce main products such as ultra-light sulfur diesel, gasoline, and other products.
>> In Company Spotlight: Air Products & Chemicals Inc.
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products' base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest industrial gas and carbon-capture projects, supplying world-scale clean hydrogen for global transportation, industrial markets, and the broader energy transition. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and globally provides turbomachinery, membrane systems and cryogenic containers.
The Company had fiscal 2022 sales of $12.7 billion from operations in over 50 countries and has a current market capitalization of about $70 billion. More than 21,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world.
For more information, visit www.airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.
Cautionary Note Regarding Forward-Looking Statements: This release contains "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 expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.
SOURCE Air Products
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🚀 Climeworks Raises USD 162M to Scale Up Technology 🛠️ DNV Advances Skylark to Enable Safe Scaling of CO2 Pipelines for Carbon Capture and Storage 🍁 Canada’s Rising Role in the G...
Inside This Issue 🏗️ Hyundai Unveils $6B Hydrogen-Powered Steel Mill in Louisiana, Aims to Position State as National Energy Leader 🤝 Deep Sky Inks Next DAC Deal in Germany with Greenlyte Carbon T...
Inside This Issue 🍁 Inside Canada’s Quiet Takeover of the Carbon Capture Industry ✈️ Phillips 66 to Supply SAF to British Airways in Calif 💧 HyVera Distributed Energy Launches Green Hydrogen-On-De...
Terra CO2 Announces Additional Series B Funding to Scale Sustainable Cement Production
Investment will facilitate the rapid build out of commercial facilities across North America and Europe for Terra’s leading SCM solutions GOLDEN, Colo.--(BUSINESS WIRE)--Terra CO2 (Terra), a leadi...
Bezos-Backed Methane Tracking Satellite is Lost in Space
WASHINGTON - An $88 million satellite backed by billionaire Jeff Bezos that detected oil and gas industry emissions of the powerful greenhouse gas methane has been lost in space, the group that ope...
BHP Inks Charter Contracts With Cosco for Ammonia Dual-fuelled Vessels
SINGAPORE, July 2 (Reuters) - BHP Group has signed contracts with COSCO Shipping for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers, the mining giant said on Wednesday. The two...
Climeworks Raises USD 162M to Scale Up Technology
Key take-aways: Climeworks surpasses USD 1 billion in funding, fueled by strong investor confidence USD 162M raised to further drive best-in-class technology and extend Climeworks Solutions CO₂ r...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.