Air Products Canada to Build and Operate a New Hydrogen Plant in Edmonton, Alberta to Supply Petro-Canada's Refinery

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March 08, 2004

Air Products and Chemicals, Inc. (NYSE:APD) announced today that its subsidiary, Air Products Canada Ltd., will construct a 71 million standard-cubic-feet-per-day (MMSCFD) hydrogen production plant to serve the Petro-Canada refinery in Edmonton, Alberta, Canada. The hydrogen and steam generating facility, which will be owned and operated by Air Products under a long-term agreement, is expected to be on-stream in April 2006.

The hydrogen production facility, a natural gas-based steam methane reformer, will help Petro-Canada's 135,000 barrel-per-day refinery to produce cleaner transportation fuels and other petroleum products from heavier, sour crude feedstocks. The Air Products facility will be located adjacent to the Petro-Canada refinery and will also supply other customers in the area. The supply arrangement is one of over 25 that Air Products has undertaken with refiners worldwide.

"Producing hydrogen to meet the high reliability needs of our customers is an Air Products strength and has led to numerous long-term relationships within the refining industry," said Scott Sherman, Air Products' vice president and general manager for Energy and Process Industries worldwide. "We are pleased to begin working with Petro-Canada on meeting its increasing hydrogen demands. The Edmonton and Fort Saskatchewan area is one of three key Canadian refining centers. It is an area that will continue to grow in hydrogen demand as more oil sands crude is processed." Sherman also indicated Air Products plans include a second larger hydrogen production facility to be located in the same region, to be on-stream in 2008, to meet this anticipated growth.

"This is a key step for our continued move to reduce sulphur levels in gasoline and diesel," said Tom Day, general manager of Petro-Canada's Edmonton refinery. "We understand the importance of these initiatives to Canadians. Longer-term, the hydrogen plant will position the refinery for the continued shift to oil sands feedstocks, as announced in our oil sands strategy in December 2003."

The Canadian hydrogen facility is the 23rd to be built under the global alliance between Air Products and Technip. This alliance continues to provide the worldwide refining industry with competitive technology, plus world-class safety with "over the fence" hydrogen supply. Both companies bring a long history of hydrogen experience to their role in the alliance. Technip provides the design and construction expertise for steam reformers while Air Products provides the gas separation technology. Air Products, through its extensive operating network, and Technip, from its large reference base, also bring effective operational and engineering knowledge to "design-in" high reliability and efficiency. The plants are operated and maintained by Air Products under long-term agreements with customers.

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