Success for Air Products' CO2 Capture Project - Analyst Blog
13 Maggio 2013 - 7:06PM
Zacks
Chemical giant Air Products (APD) has announced
the successful operation of a United States Department of Energy
(DOE) Demonstration Project. The project has been specifically
designed to capture roughly one million tons of carbon dioxide
(CO2) in an enhanced oil recovery operation. Air Products’
innovative technology is behind this remarkable accomplishment
which has not been achieved anywhere else in the U.S.
Air Products’ project in Texas recovers and purifies CO2, all
of which is then transported in its gaseous state through a Denbury
Green Pipeline-Texas, LLC-owned pipeline for injection into the
Denbury Onshore operated West Hastings Unit.
This noteworthy achievement marks a milestone in DOE’s
Industrial Carbon Capture and Storage (ICCS) program. DOE estimates
an additional 1.6-3.1 million barrels of oil to be produced
annually from the CO2 injection at the enhanced oil recovery
operation.
Air Products’ CO2 removal technology was retrofitted to its
steam methane reformers (SMR) situated within the Valero Port
Arthur Refinery, which produces hydrogen to help in the making of
cleaner burning transportation fuels by refinery customers on Air
Products' Gulf Coast hydrogen pipeline network. Hydrogen is mostly
used in petroleum refining processes to remove impurities found in
crude oil such as sulfur, olefins and aromatics in order to meet
the product fuels specifications.
Air Products' Gulf Coast 600-mile hydrogen pipeline supply
network stretches from the Houston Ship Channel in Texas to New
Orleans, La. The pipeline is fed by over 20 hydrogen production
units and provides over 1.2 billion cubic feet of hydrogen per day
to refinery and petrochemical customers. Air Products' Gulf Coast
hydrogen plant and pipeline supply network is the world's largest
hydrogen system.
DOE contributed 66% of the funds for the over $400 million
project. Air Products initially received $253 million of funds from
DOE through American Recovery and Reinvestment Act (ARRA) in June
2010 and later received another $30 million for final engineering,
design, construction, and project operation through Sep 2015.
The DOE project’s main purpose is to monitor , verify, and
keep an account of injected CO2, so that it remains underground,
safely and permanently trapped in the same geologic formation that
confined the oil brought to the surface in the demonstration.
Air Products currently holds a short-term Zacks Rank #4
(Sell).
Other companies in the chemical industry having favorable
Zacks Rank are Shin-Etsu Chemical Co., Ltd.
(SHECY), Celanese Corporation (CE)and
LyondellBasell Industries NV (LYB). While
Shin-Etsu Chemical and Celanese hold a Zacks Rank #1 (Strong Buy),
LyondellBasell retains a Zacks Rank #2 (Buy).
AIR PRODS & CHE (APD): Free Stock Analysis Report
CELANESE CP-A (CE): Free Stock Analysis Report
LYONDELLBASEL-A (LYB): Free Stock Analysis Report
SHIN-ETSU CHEM (SHECY): Get Free Report
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