Air Products says it is teaming up with World Energy to build a new $2 billion major expansion project at World Energy’s sustainable aviation fuel (SAF) production and distribution hub in Paramount, California. The Los Angeles County facility reportedly is the world’s first commercial scale and North America’s only SAF production facility and its total fuel capacity will be expanded to 340 million gallons annually, according to the company.
The long-term, take-or-pay agreement with World Energy includes Air Products’ construction and ownership of a new hydrogen plant to be operated by Air Products and renewable fuels manufacturing facilities to be operated by World Energy. The project is scheduled to be onstream in 2025, according to Air Products.
As part of the agreement, Air Products extends its Southern California hydrogen pipeline network to supply hydrogen to the existing World Energy facility and to further increase supply reliability for all of Air Products’ hydrogen pipeline network customers in Southern California. The expanded pipeline network will also enable Air Products to provide low-or-zero-carbon hydrogen in the future. Air Products and World Energy reportedly will collaborate on innovations to transition to green hydrogen inputs, further reducing the carbon intensity of the fuels it produces.
The SAF produced by World Energy reportedly is a 100% sustainable fuel made entirely of renewable resources and contains no fossil-based feedstock. It is not co-processed with fossil fuel in traditional oil refineries, and its carbon attributes comply with all state and U.S. federal regulations for advanced biofuels. Its lifecycle carbon emissions are currently up to 80% lower than conventional jet fuel, according to Air Products. It is currently approved at a 50/50 blend level with conventional jet fuel for commercial use.
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