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Area Development - Site Selection, Facility Planning and Workforce Development

Air Products Plans Ascension Parish, Louisiana, Clean Energy Complex

10/26/2021
Industrial gas company Air Products will develop a $4.5 billion clean energy complex in Ascension Parish, Louisiana. The project is expected to create 170 jobs.

The company will construct a blue hydrogen manufacturing complex to produce more than 750 million standard cubic feet per day of blue hydrogen, with carbon dioxide from the manufacturing process captured and permanently sequestered. The plant will be the first carbon-capture project in Louisiana and is expected to be operational in 2026. According to Louisiana Economic Development (LED) it will also be the world’s largest permanent carbon dioxide sequestration endeavor to date.

"Blue" products are made using hydrocarbons as a feedstock, with carbon dioxide from the production process captured for permanent sequestration. Carbon dioxide is recognized as a major source of human-caused emissions contributing to climate change. Carbon capture and sequestration, or CCS, keeps the greenhouse gas out of the atmosphere by capturing it at the production site and storing it in reservoirs far underground.

About 95 percent of the carbon dioxide generated at the Air Products facility will be captured, compressed and transported by pipeline to multiple inland sequestration sites located along a pipeline corridor extending up to 35 miles to the east of the complex, state officials said. More than five million metric tons per year of carbon dioxide will be permanently sequestered in geologic pore space secured from the State of Louisiana about a mile below ground. Air Products has received approval from the State Mineral and Energy Board for the permanent sequestration of the carbon dioxide.

“This is a major industrial investment that will create quality manufacturing jobs while limiting environmental impacts, a goal envisioned by my Climate Initiatives Task Force,” Governor John Bel Edwards said. “Carbon capture and sequestration are important to Louisiana’s efforts to reduce carbon dioxide emissions while maintaining jobs and growing our manufacturing base. This project is a clear demonstration of our ability to grow the Louisiana economy while lowering the carbon footprint of industry."

To secure the proposed project, Air Products also was offered a performance-based grant of up to $5 million to offset plant and pipeline construction costs; that grant is payable over five years, subject to the company meeting specified investment and job creation benchmarks. The company also is expected to utilize the state’s Industrial Tax Exemption and Quality Jobs programs.

In addition, the State offered Air Products a competitive incentive package that includes the comprehensive workforce solutions of LED FastStart – the state’s workforce development program for the past 12 years.

“The Capital Region is at the leading edge of the transitional energy sector, and Air Products’ decision to build one of the world’s largest low-carbon hydrogen projects here underscores that the talent, infrastructure, and business climate is turn-key for clean energy investments of a global scale,” said Adam Knapp, president and CEO of the Baton Rouge Area Chamber. “We congratulate our partners in Ascension Parish and look forward to working together to support Air Products.”

Air Products is a world-leading industrial gases company in operation for 80 years. 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.

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