NEW ORLEANS - Air Products is seeking an equity partner to help share the financial costs and operational risks of its $4.5 billion Louisiana Clean Energy Complex in Ascension Parish, an initiative set to become one of the largest blue hydrogen and ammonia projects in the world.
The project is still in its initial stages. In Oct. 2024, as it entered the technical phase, Air Products and its contractors completed soil sampling in the southern part of Lake Maurepas near the company’s approved South Test Well.
Focusing on Asia
Air Products is in discussions with potential equity investors, with a particular focus on Asian companies based in Japan and Korea. The objective is not only to secure additional investment but also to sign a long-term contract with a buyer who agrees to purchase most of the product in advance. This arrangement would guarantee a steady stream of money making the project less risky.
By partnering with companies in Japan and Korea, Air Products hopes to align itself with the markets that demand low-carbon solutions the most. This would boost the project's commercial viability, particularly now that the US federal government is withdrawing support for such projects.
How it Works
The Louisiana Clean Energy Complex is designed to produce more than 750 million standard cubic feet of hydrogen per day. In this process, hydrogen is generated from natural gas using a method that captures up to 95% of the carbon dioxide emissions—a process known as carbon capture and sequestration (CCS). A portion of the produced hydrogen will be further processed into blue ammonia, a valuable hydrogen carrier for international markets.
This dual-product strategy not only leverages existing natural gas resources but also meets rising global demand for low-carbon energy solutions.
Critical Infrastructure
This equity partner initiative is a central part of Air Products’ broader clean energy strategy. With heightened scrutiny on clean hydrogen investments and a global shift toward decarbonization, projects like this serve as critical infrastructure for the energy transition.
By combining substantial production capacity with advanced carbon capture technology, the project not only aims to deliver low-carbon hydrogen and ammonia but also positions Louisiana as a leader in the global hydrogen economy.
