AES and Air Products have formed a partnership to build a $4 billion 1.4GW AES green hydrogen facility in Texas. This facility will be powered by both wind and solar energy sources. Therefore, it’s the nation’s first project of its kind, which will help cater to the rising demand for clean fuel. According to Gov. Greg Abbott, the project will help the state retain its national leadership role in energy.
Seifi Ghasemi, the Air Products CEO, said both companies have been working on the project for many years. Besides providing energy security benefits, he said the AES green hydrogen facility would also bring job opportunities and tax benefits. Ghasemi said he was excited about partnering with AES to make clean green hydrogen available to U.S. customers.
Expectations for the AES green hydrogen facility
Upon completion, the facility will create over 1,300 construction jobs and 115 permanent operations roles. Additionally, the project would provide about $500 million in tax benefits for the state over the course of its lifespan. The developers expect the green hydrogen facility to be fully operational by 2027.
The AES green hydrogen facility will have an electrolyzer capable of generating over 200 tonnes of green hydrogen a day. However, both partners will own the renewable energy and electrolyzer assets jointly and equally. Air Products will serve as the exclusive off-taker and marketer of the green hydrogen products, under a 30-year contract. Their hydrogen green products will be supplied to industrial, as well as heavy-duty transportation markets.
The developers of the AES green hydrogen facility intend to produce a totally clean source of energy on a massive scale. If all of it serves the heavy-duty truck market, they believe it would avoid 1.6-million-metric-tons of CO2 emissions. Over the project’s lifespan, the developers expect it to reduce the amount of CO2 emissions by 50 million metric tons. This is the equivalent of nearly five billion gallons of diesel fuel.