August 2007

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Air Products has announced plans for participating in a big new petroleum coke-fed gasification project planned to be built by Eastman Chemical, Inc., Kingsport, TN in the Gulf Coast. Air Products, of Lehigh Valley, PA has signed a Letter of Intent to that effect. The $1.6 billion plant, described as one of the first major solid-fuel gasification facilities in the Gulf Coast, will be located in Beaumont, TX. It is planned to produce 70 billion standard cubic feet of hydrogen annually, an Eastman spokesperson told H&FCL (Air Products wouldn’t release hydrogen production data for competitive reasons). It will also produce methanol and ammonia, Air Products said, as well as 7,000 tons of oxygen per day. Air Products did say it will market the hydrogen via its Gulf Coast hydrogen supply pipeline network. Eastman expects the regulatory permit application process to start later this year, construction is expected to be underway in 2009, and the plant is expected to go on line in 2011. Separately, Air Products reported it recently completed the first fueling of a new Greek fuel cell-powered submarine with hydrogen in Skaramanga, near Athens. Air Products had provided the hardware for the fueling station to German shipbuilder Howaldtswerke-Deutsche Werft which designed the Class 214 subs capable of operating both on diesel power in surface cruising and on air-independent fuel cells for weeks under water (H&FCL April, Sept. 02; Dec. 05; Aug. 06).

Contacts: Air Products, Art George, 610/481-1340, georgeaf@airproducts.com; Eastman, Martha Lawson,
423/229-6574,mglawson@eastman.com.