US industrial gas company Air Products has unveiled plans to invest around $500 million in a new green hydrogen plant in New York State, which is expected to begin commercial operation by 2027.
In July, the City of Massena project obtained 94 MW of hydroelectricity from the New York Power Authority (NYPA) St Lawrence hydroelectric plant at the Canadian border.
Using hydropower around the clock means the electrolyzers can be kept running continuously, resulting in green hydrogen with a lower levelized cost than produced using only solar or wind power.
It is not clear whether the 94 MW of electricity from the project would otherwise be consumed as electricity, or whether it is surplus to local grid needs.
Air Products appears to expect local, state and national financial incentives before making a final investment decision on the project, including tax credits of up to $3/kg contained in the recent reduction in inflation.
“Air Products has determined that market demand justifies the investment in the project, assuming receipt of certain local and state incentives, as well as all Inflation Reduction Act (IRA) benefits, and that are included in the project’s current budget,” the Pennsylvania-based company said in a press release.
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“Following this proposed facility announcement, Air Products is also investigating the feasibility of establishing a network of hydrogen fueling stations in the Northeast region of the United States, including the ability to service the truck fleet of Air Products. Air Products has announced plans to convert its global fleet of approximately 2,000 trucks to zero-emission hydrogen fuel cell vehicles. »
Green hydrogen from the facility is expected to be sold for use in vehicles in the state “as well as other potential industrial markets in the Northeast.”
New York recently set a goal for 100% of medium and heavy-duty vehicles sold or leased in the state to be zero emissions by 2045.
“By supporting Air Products’ expansion in Massena, NYPA advances New York’s aggressive climate goals and helps advance the state’s vision to become a regional hydrogen hub,” said the NYPA CEO Justin E Driscoll.
The 820.8 MW St. Lawrence Hydroelectric Generating Station is powered by 32 turbines built into a long dam that straddles the St. Lawrence River separating the United States and Canada, with both countries getting an equal share of the electricity generated .