Air Products to supply, host NH3 plant

Lehigh Valley, Penn. — Air Products on Oct. 22 reported that it has signed a long-term hydrogen supply agreement with Pallas Nitrogen Texas LLC. Air Products said it will supply 44 million standard cubic feet per day of hydrogen from its existing Gulf Coast Pipeline to Pallas. The supply is to begin in mid-2016 when Pallas begins ammonia production operations at their plant, which will be located on land leased from Air Products at its established Pasadena, Texas, industrial gas manufacturing location. "We are excited to have Air Products, a premier global hydrogen producer, as Pallas’ host and hydrogen supplier for our Pasadena ammonia plant,” said Steve Dopuch, Pallas CEO. “The strategic location and direct access to their Gulf Coast Pipeline affords us great confidence with respect to safe, reliable, and economic delivery of hydrogen to the Pallas ammonia plant. We look forward to a long-term, mutually successful relationship for this plant and our future work with Air Products." According to an Air Products press release, Pallas Nitrogen is a privately held entity formed to develop, own, and operate a 660-ton-per-day ammonia plant located in Pasadena. Significant development, permitting, and engineering have reportedly been completed on the project, and full construction is expected to commence in the fourth quarter of 2015. Production is anticipated to begin mid-2016. The release said company stakeholders have considerable experience owning, operating, and successfully divesting multiple turnaround assets in the coal industry. Company management brings over 50 years of combined project development and management experience, in addition to strategic relationships, to bear in support of the project. Additional information on Pallas was not immediately available at press time. Gulf Coast Ammonia LLC (GCA), a partnership of Borealis, Vienna, and Agrifos Partners LLC, New York City, have also been planning an ammonia plant at an existing chemical site on the Texas Gulf Coast (GM May 25, p. 1). They confirmed Oct. 23 that Pallas is not their project.