Air Products and AES Announce Plans to Invest Approximately $4 Billion to Build First Mega-scale Green Hydrogen Production Facility in Texas

Apr 11, 2024 | Case Studies

This post was first published by AES on December 8, 2022. The entire article can be found here.

LEHIGH VALLEY, PA and ARLINGTON, VA (December 8, 2022) – Air Products (NYSE: APD) and The AES Corporation (NYSE: AES) today announced plans to invest approximately $4 billion to build, own and operate a green hydrogen production facility in Wilbarger County, Texas. This mega-scale renewable power to hydrogen project includes approximately 1.4 gigawatts (GW) of wind and solar power generation, along with electrolyzer capacity capable of producing over 200 metric tons per day (MT/D) of green hydrogen, making it the largest green hydrogen facility in the United States. 

The facility, which is targeted to begin commercial operations in 2027, will serve growing demand for zero-carbon intensity fuels for the mobility market as well as other industrial markets. It will yield a totally clean source of energy on a massive scale, and, if all the green hydrogen were used in the heavy-duty truck market, it would eliminate more than 1.6 million metric tons of carbon dioxide (CO2) emissions annually when compared to diesel use in heavy-duty trucks. Over the project lifetime, it is expected to avoid more than 50 million metric tons of CO2, the equivalent of avoiding emissions from nearly five billion gallons of diesel fuel.

Air Products and AES* will jointly and equally own the renewable energy and electrolyzer assets, with Air Products serving as the exclusive off-taker and marketer of the green hydrogen under a 30-year contract. 

The project would create more than 1,300 construction and 115 permanent operations jobs, as well as about 200 transportation and distribution jobs. It is also expected to generate approximately $500 million in tax benefits to the state over the course of the project’s lifetime, while extending Texas’ energy leadership.

“We are very pleased to announce this exciting joint venture with AES, which is one of the leading renewable energy companies in America. The new facility in Texas will be, by far, the largest mega-scale clean hydrogen production facility in the U.S. to use wind and sun as energy sources. We have been working on the development of this project with AES for many years and it will be competitive on a world-scale while bringing significant tax, job and energy security benefits to Texas. We are excited to move forward and make clean green hydrogen available to U.S. customers in the near future,” said Seifi Ghasemi, Air Products’ Chairman, President and Chief Executive Officer.

AES President and Chief Executive Officer Andrés Gluski stated, “This project will capitalize on AES’ position as one of the nation’s largest renewable energy developers and its global leadership in innovations such as energy storage systems and supplying around the clock clean energy to data centers. We are very pleased to partner with the world leader in hydrogen, Air Products, for this first of its kind mega-scale green hydrogen facility in the United States. We will build more than 1 GW of new solar and wind facilities to provide zero carbon energy for electrolysis and related production facilities. AES believes that green hydrogen has a key role to play in decarbonizing transportation and accelerating the future of energy.” 

Demand for green hydrogen for mobility and industrial applications is expected to grow exponentially across the United States over the next decade. The growth in demand is supported by green hydrogen’s role in net-zero ambitions announced by several states and major corporations. The project is subject to receipt of local permits, and local, state and federal incentives. 

*Alberta Investment Management Corporation (AIMCo) is an investor in AES’ clean energy business in the United States with 25% ownership in the business’ growth projects.

About Air Products 

Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products’ base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world’s largest industrial gas and carbon-capture projects, supplying world-scale clean hydrogen for global transportation, industrial markets, and the broader energy transition. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and globally provides turbomachinery, membrane systems and cryogenic containers.

The Company had fiscal 2022 sales of $12.7 billion from operations in over 50 countries and has a current market capitalization of over $70 billion. More than 21,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products’ higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what’s possible to address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedInTwitterFacebook or Instagram

Air Products Cautionary Note Regarding Forward-Looking Statements 

Cautionary Note Regarding Forward-Looking Statements: This release contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022, and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.

About AES 

The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we’re improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. Learn more at www.aes.com/green-hydrogen

AES Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels, rates of return consistent with prior experience and the COVID-19 pandemic. 

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A: “Risk Factors” and Item 7: “Management’s Discussion & Analysis” in AES’ 2021 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

Any AES Stockholder who desires a copy of the Company’s 2021 Annual Report on Form 10-K filed February 28, 2022, with the SEC may obtain a copy (excluding the exhibits thereto) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Annual Report on Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

Adam Rickel

Vice President of Origination

Adam is currently the Vice President of Origination for Forsite Renewables. Adam joined Forsite in February 2024 after serving as Vice President, Strategic Accounts for FTC Solar, a global solar tracker and software provider. While at FTC he focused on engaging developers and asset owners across North America to form supply partnerships via volume supply agreements. Prior to FTC, Adam spent 15 years at NextEra Energy Resources, largely concentrating on renewable energy development and contract origination.

While at NextEra, Adam carried out early and late-stage wind development tasks, leading or directly participating in over 700 MW of wind energy development and construction in Texas and Ontario as well as advancing wind project development at sites across the Midwest US and Atlantic Canada. In his Origination function, Adam originated over 3,600 MW of renewables and/or battery storage Power Purchase and Build Transfer Agreements representing approximately $4.5B of capital deployed. He was also responsible for building out a greenfield transmission development team focused on high-voltage, cross-state transmission projects to unlock broad access to renewable energy nationwide.

 Adam graduated from the University of Florida with a BA in Economics and minors in Business Administration and Entrepreneurship.

Gary Greene

Project Manager

Gary, joined the Forsite team in 2021 as Project Manager after 35 years of industrial construction and manufacturing experience. During his manufacturing career, Gary had a multitude of roles–starting in production and quality control, moving onto plant site utilities and finishing in maintenance.
 
As the plant maintenance manager, Gary coordinated maintenance and electrical teams to ensure that all plant operations and goals were achieved. Gary is responsible for Site and Project Management at one of Forsite’s largest industrial properties.

Bill Abraczinskas

Director of Environmental

Prior to joining Forsite, Bill spent 30 years in global environmental engineering firms prior to creating his own business to provide environmental consulting and engineering services to the industrial and commercial markets.
 
His background is in large-scale civil remediation projects involving design/build, earthwork, in-situ remediation, pump and treatment systems, demolition, thermal incineration, facility rehabilitation, and wetlands restoration. Bill’s strengths include guiding clients through compliance with regulatory agencies. Bill is currently shepparding one of Forsite’s largest Risk Transfer projects through demolition and remediation in order to be repurposed to Forsite’s needs.

Gerald Stroner

Facilities Manager

Gerry joined the Forsite team in 2017 as Facilities Manager at ReVenture Park in Charlotte, NC. Gerry supervises repair and upkeep of all buildings, equipment and vehicles, grounds maintenance and heavy equipment operations.
 
He also provides facilities management at our Edge Water Treating waste water treatment facility in Salisbury, NC.

Gerry is currently pursuing waste water operator credentials, and is developing drone photography services for Forsite.

A native of Big Bear Lake, California, Gerry is an army veteran with 11 years construction experience in earthquake country. He now lives in Huntersville NC.

Greg Coleman

Principal

Greg represents the perfect blend of mechanical practical ability and theoretical engineering acumen. A native of Northern Australia, Greg was compelled to hone his mechanical skills keeping farm equipment operational in harsh conditions.
 
Additionally, this mechanical ingenuity led Greg to study Engineering and pursue a career in the consulting business with companies such as URS and Geosyntec. Greg is the Technical Director for all of Forsite’s endeavors including power, wastewater, construction, decommissioning, demolition and environmental liability projects.

Bobby Glidewell

Staff Landman

Bobby Glidewell is a senior member of our land team responsible for the land acquisition of our projects. Bobby has over 30 years of experience in land management.
 
Prior to Forsite, Bobby worked for a Fortune 200 energy company as a Lead Land Services Representative. Bobby has also held senior land roles with numerous energy companies where he was able to manage the land efforts of natural gas projects. Bobby holds a Bachelor of Science in Organizational Management from John Brown University. Bobby resides in Northwest Arkansas.

Drew Connors

Development Manager

Drew Connors is a member of our development team responsible for the research of new sites along with assisting with solar and battery storage development and engineering. Drew comes from a commercial construction background, where he was managing new build and renovation projects for clients in the financial services industry.
 
Drew studied at The University of Alabama in the pursuit of a Bachelor of Science in Mechanical Engineering. He then stayed at Alabama to pursue further studies in business and energy systems and received a Master of Business Administration and a Master of Science in Mechanical Engineering as well.

Marijon Owens

Project Developer

MariJon (“MJ”) recently moved over to Forsite Renewables from Forsite’s risk transfer division. MJ is supporting the development of later-stage projects as they progress toward the start of construction. She brings a keen attention to detail and project management expertise to these projects, overseeing some critical path processes to ensure the projects are completed on time and under budget.
 
Prior roles at Forsite include Risk Transfer Project Manager responsible for supervising the demolition and remediation of a chemical facility site and operations manager of Forsite’s Clean Energy renewable natural gas facility at ReVenture Park. Additionally, MJ has served as project manager, logistics coordinator, risk manager, safety officer and quality proponent at various Forsite locations. MJ was raised on a farm in eastern North Carolina and studied in NC, TX and the UK, graduating with a BA in 1991.

Ann Haney

Director of Real Estate

Ann oversees the title and survey process and manages all land contracts. Prior to joining Forsite, she worked as a Real Estate Manager for solar development projects and a title analyst for wind development.
 
Prior to her energy career, she has 20 years of experience as a practicing attorney. Ann has a JD from Boston College.

Mark Albert

Senior Director of Development

Mark Albert is a senior member of our development team responsible for battery storage, engineering, and business development. Mark has more than 25 years of renewable energy sales and development experience.
 
Prior to Forsite, Mark was Vice President of Business Development for an international battery company where he was responsible for all sales and marketing, technical assessments, system modelling, and preliminary project designs for the company’s utility scale battery storage business. Prior to that, Mark served as Vice President of Development for a geothermal energy development firm where he was instrumental in the company’s growth over his 17 years there, negotiating and executing PPAs totalling $2 billion in revenues. Mark earned a Bachelor of Science in electrical engineering from Washington University.

Scott Donaubauer

Director of Solar + Storage Development

Scott has over 15 years of experience in the power and industrial sectors and is responsible for solar and battery storage as well as business development.
 
Prior to Forsite, Scott was a mechanical design & field engineer, and project manager. Most recently he founded an energy services company specializing in field services and startup & commissioning. Scott has a BS in mechanical engineering from the University of Iowa.

Kenny Gunter

Director of Land Acquisition

With his prior experience as a Solar Project Developer, Kenny is mainly involved in early site assessment, and develops land acquisition strategies. He oversees all land acquisitions, and manages our landmen.
 
Prior to joining Forsite, he not only worked as a Solar Project Developer, but also managed landmen in both solar, and oil & gas spaces, and worked as a landman in the oil and gas development field.
Kenny has a BS in Finance from Penn State University, is a Registered Professional Landman, has a GIS Certificate from North Texas and is a Texas Notary.
 
 
 

Maegan Bean

Senior Director of Project Finance

Maegan Bean is a senior member of our finance team. Prior to Forsite, Maegan worked for a Fortune 200 energy company as a Director of Finance leading the team responsible for the financing of new ventures and as a Manager of Project Valuation leading a team responsible for the pricing and valuation of utility-scale wind, solar, and battery energy storage projects.
 
Maegan has also held roles with a focus on financial and statistical analysis in the aerospace/defense and actuarial consulting industries. Maegan holds a Bachelor of Science in Mathematics and Financial Economics from the University of Maryland, Baltimore County and a Master of Engineering in Project Management from the University of Maryland, College Park.
 
 
 

Keith Kurtz

Vice President of Development

Keith Kurtz is a senior member of our development team responsible for solar and battery storage development. Keith has over 15 years of renewable energy development experience.
 
Prior to Forsite, Keith held senior-level development positions with numerous renewable energy development and manufacturing companies, where he was able to lead the development of multiple gigawatts worth of utility-scale renewable energy projects. Keith holds a Bachelor of Science in environmental science from Oklahoma State University and a Master of Science in Applied Science from the University of Nebraska.

Kevin Day

President - Solar Development

Kevin has twenty years of experience developing and financing power generation facilities, including natural gas, wind and solar projects. Prior to Forsite, Kevin worked for First Solar as Director of Project and Business Development for the Eastern U.S.

Prior to First Solar, Kevin developed and financed wind projects at BP Wind Energy. Prior to BP Wind Energy, Kevin also developed wind projects for SilverPoint Energy, a company he founded, and was a Director of Project Finance for Panda Energy, a developer of combined cycle natural gas projects.

Kevin holds his BBA in finance, MBA and JD from the University of Oklahoma.

Michelle Skinner

Executive Administrative Assistant

Michelle Skinner is the Executive Administrative Assistant for the Forsite team. She serves as administrative support for the CEO, along with support for the COO and Director of Business Operations. Michelle is also responsible for Accounts Payable & Accounts Receivable.

Prior to joining Forsite, Michelle spent 24 years with the Kraft Heinz Company in Massillon, Ohio, where she was responsible for payroll and administrative support to the Production Manager.  She also worked in the Administration and Human Resources departments.

Andrew Archer

Controller

Andrew Archer is the Financial Controller for Forsite. In this role, Andrew has oversight of the Accounting department, with responsibilities for the entire end-to-end accounting cycle of Forsite. This includes month-end close, financial reporting, budgeting/forecasting, cash flow projection, and developing internal control policies and procedures.

Prior to joining Forsite, Andrew spent 16 years in Real Estate Accounting with two Charlotte-based CRE firms, both as Director of Accounting. Andrew earned his B.A. in Economics and History before earning his MBA from FIU and an MBA+ Certificate with emphasis in Advanced Financial Reporting/Accounting from UNC Charlotte.

Andrew and his wife are originally from Jamaica. They moved to the US in 2003 and live in Gastonia, NC with their two sons and daughter.

Jenny Wesley

Paralegal

Jenny Wesley is a paralegal for Forsite’s legal department. She supports General Counsel and the Land Team with real estate transactions, titles, surveys, and more.

Prior to joining Forsite, Jenny worked for a law firm in Canton, Ohio for over 23 years where she provided real estate paralegal support. Jenny earned an Associate’s Degree in Applied Science for Legal Assisting from Stark State College. Jenny resides in North Carolina with her husband, daughter, and son. She enjoys spending time with her family, going to the beach, and hiking through the woods.

Joshua Smith

General Counsel

As General Counsel, Josh manages Forsite’s legal department. Prior to joining Forsite, Josh was the chief legal officer for a utility-scale solar developer.

Before that, he worked as a corporate attorney for Nelson Mullins Riley & Scarborough LLP, a leading U.S. law firm, and served as an attorney in the Enforcement Division of the Federal Election Commission. Josh holds an LL.M from American University Washington College of Law, a J.D. from Nova Southeastern University and a B.S. from Florida State University.

Shannon Doster

Director of Business Operations

Forsite Development day-to-day operations are managed by Shannon Doster. Her responsibilities include financial reporting, executive support, human resources, marketing, and property management administration.

 

Offering over 20 years of experience in business management, accounting, sales and marketing along with her previous job for an international corporation, has gained Shannon experience in many business sectors. This coupled with her versatility has contributed much to Forsite ’s ongoing success.

Shannon studied Business Management at York Technical College. She has special training in Six Sigma quality and has earned a Green Belt Certification. Shannon is also a licensed Real Estate Broker and is a Notary Public for North and South Carolina.

Ryan Ford

Chief Operating Officer

Ryan is responsible for the operations, strategy and project management of Forsite’s risk transfer, renewables and clean energy business lines. Prior to joining Forsite in 2018, Ryan’s background was in Engineering and Project Management; specifically, large-scale engineering, procurement, fabrication and construction (EPFC) projects.

Ryan has spent significant time on major construction sites, supervising installation of the design of new construction including coal, combined cycle and nuclear power plants.

Additionally, Ryan has worked in various engineering management roles within the power industry focusing on all fuel types for major base load plants, including the newer Allam Cycle technology.

Tom McKittrick

Chief Executive Officer / Founder

Tom is the Chief Executive Officer / Founder of Forsite Development, Inc. and manages all aspects of the company’s operations. Tom started Forsite in December 2004 with the idea that there was a significant supply of vacant corporate surplus industrial facilities throughout the Southeast that could be acquired aggressively and then repositioned. Since starting Forsite, Tom has purchased over 7 million SF of space throughout the Carolinas.

Forsite’s most ambitious project to date is “ReVenture Park”, a 667 acre re-development of a shuttered chemical plant, currently listed as a Federal Superfund site into a “Renewable Energy Industrial Park”. The property, located along the shores of the Catawba River in Charlotte, NC has over 1.4 miles of river frontage and is the largest piece of underutilized heavy industrial property in the region. Once complete, this project is projected to create over 1,100 “green collar” jobs and over $900 million in new investment.

Prior to starting Forsite, Tom was a ten year veteran and Senior Vice President of Development for Indianapolis based Lauth Property Group. In July of 2001, Tom moved to Charlotte to open Lauth’s second regional office where he managed all build-to-suit, land development and construction activities that he and his team created in the Southeast.

Tom has a Bachelor of Science Degree in Marketing and Finance from Ball State University. He currently serves on the Board of Directors for Holy Angels (www.holyangelsnc.org).