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Air Products and VPI Sign Joint Development Agreement for Large-scale, Low-carbon Hydrogen Production in Humber

Project Supports Decarbonisation Needs of Power and Industrial Customers

Air Products (NYSE:APD), the world’s largest hydrogen producer, and power generator VPI, are pleased to announce the signing of a joint development agreement to drive forward the “Humber Hydrogen Hub” or “H3”, which seeks to develop a flagship 800MW low-carbon hydrogen production facility in Immingham, UK. The majority of hydrogen produced would be used to decarbonise VPI Immingham’s existing power production. 

The agreement was signed by Air Products Chief Operating Officer Dr. Samir J. Serhan and VPI Chairman Russell Hardy.

Air Products Chief Operating Officer Dr. Samir J. Serhan and VPI Chairman Russell Hardy sign joint development agreement for large-scale, low-carbon hydrogen production in Humber.

Proven Technology Supporting the Humber’s Ambitions
As the UK’s largest industrial cluster, the Humber has the highest levels of industrial carbon dioxide (CO₂) emissions. H3 would produce low-carbon hydrogen at large scale, combining market-leading hydrogen production, carbon capture technology and offshore CO₂ storage currently under development for the Humber region.  

The majority of the low-carbon hydrogen would serve as a substitute fuel for VPI’s existing third gas turbine power train. Additional low-carbon hydrogen would also be made available to other industrial users. Combined with deployment of post-combustion capture technology on trains 1 and 2 at VPI Immingham as part of the Humber Zero project, H3 would bring substantial decarbonisation to the VPI combined heat and power facilities, saving over two-thirds of the emissions from its Immingham industrial site. 

The H3 project looks to capture up to two million tonnes of CO₂ per annum and contribute to achieving Net Zero in the wider Humber industrial region by 2040. 

Crucial Development Milestones 
The H3 project has submitted an application for “Strand 1” funding as part of the Net Zero Hydrogen Fund. Administered by UK Research and Innovation , the fund has the objective of enhancing hydrogen production at scale. It will contribute towards the UK Government’s ambition of realizing 10GW of low-carbon hydrogen production by 2030. As both companies move towards an investment decision, this marks a significant step that could bring hundreds of new jobs to the region during construction and operation.

Air Products and VPI look forward to constructive engagement with the Government on how the H3 project can become a reality.

Air Products’ Chief Operating Officer Dr. Samir J. Serhan said: “We are excited to be working with VPI, a strong proponent for decarbonisation in the Humber region. Having a partner who is committed to decarbonising their existing power production operations through the use of low-carbon hydrogen provides the secure hydrogen offtake that makes this an excellent opportunity for us to support them and the UK Government’s broader sustainability targets.”

VPI’s Project Director Jonathan Briggs said: “When Humber Zero was first developed over two years ago, a low-carbon hydrogen solution for VPI’s third train was a critically important part of our mission to decarbonise Immingham. By partnering with Air Products on H3, we are harnessing the expertise of the world’s largest producer of hydrogen―and the operator of one of the largest low-carbon hydrogen facilities in Port Arthur, Texas, USA―to ensure that we can make a substantial contribution to the decarbonisation of the Humber region. We are confident that, when appropriate government policy develops with respect to support of low-carbon hydrogen, H3 would materially contribute to meeting the UK’s Net Zero goals”. 

“VPI is investing heavily in the energy transition and supporting the creation of a hydrogen economy in the UK as part of the overall drive towards achieving net zero in the coming decades.” 

About Air Products
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals; carbon capture projects; and world-scale low- and zero-carbon hydrogen projects supporting global transportation and the energy transition.

The Company had fiscal 2021 sales of $10.3 billion from operations in over 50 countries and has a current market capitalization of about $55 billion. More than 20,000 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 address the challenges facing customers, communities, and the world. For more information, visit airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.

About VPI Immingham
VPI is a UK-based power company, providing energy to the National Grid. VPI is committed to investing more than £2 billion on supporting energy transition over the next five years.

VPI Immingham is a Combined Heat and Power (CHP) plant near Immingham, on the south bank of the Humber estuary in the UK. It is one of the largest CHP plants in Europe, capable of generating 1.2GW and up to 930 tonnes of steam per hour, which is used by neighbouring refineries to produce a range of essential products.

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 risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. 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.