Air Liquide subsidiary, Shanghai Chemical Industry Park Industrial Gases (SCIPIG) is expected to infuse more than $204 million into the construction of two new hydrogen production units and support associated infrastructure development in Shanghai Chemical Industry Park (SCIP).
Essentially, the new facilities are designed to bring significant environmental benefits owing to the CO2 capture & recycle technology, which will help prevent 350,000 tonnes of CO2 emission per year, equivalent to the emissions of 1 million Chinese households upon electricity consumption.
These two units will also have a strong connection with the existing SCIPIG local network and will effectively replace the current supply that is typically sourced from a third-party coal-powered gasification unit.
By connecting the production units to SCIPIG’s local pipeline network, the new projects will be able to further boost the flexibility and reliability of gas supply.
Altogether, the SCIPIG will operate four hydrogen units – two new, and two existing – along with four air separation units in the Park.
Subject to more than 15 year-long contracts, these hydrogen sites will produce, and supply carbon monoxide and hydrogen to Shanghai Lianheng Isocyanate Company, and Covestro China in the Park, whilst also catering to electronics customers in the Yangtze River Delta megalopolis.
With a total hydrogen production capacity of nearly 70,000 Nm3/h, the two units will also address the carbon monoxide production of 28,000 Nm3/h with carbon capture technology.
The Air Liquide Engineering and Construction built Steam Methane Reformers (SMR) is scheduled to begin the first phase of operation by the end of 2023.
Elaborating on SCIP, the park sits on a 29,4 km2 area and houses some of the major international and local chemical companies, which have been supported by Air Liquide through different initiatives.
More recently, Air Liquide teamed up with SCIP once again, and Shenergy to announce a joint venture. As a part of this deal, SCIPIG provided the hydrogen produced to the hydrogen refueling stations in the Yangtze River Delta and foster the booming hydrogen vehicles market in the region.