Air Products acquires hydrogen assets at Uzbekistan refinery for $140m

Air Products will acquire Saneg’s hydrogen production assets at the Fergana Oil Refinery in Uzbekistan for a reported $140m.

The industrial gas giant will secure a steam methane reforming (SMR) unit that can process either 100% natural gas or liquid petroleum gas. The hydrogen produced onsite powers both the refinery and the wider merchant market.

In 2021, Air Products won a contract to supply two pressure swing adsorption (PSA) units for hydrogen production at the Fergana Oil Refinery. The site is currently undergoing modernisation efforts to enhance its production capacity.

This will include the introduction of hydrocracking processing and expansion of the fuel processing depth to over 92%. Air Products’ renovation and acquisition of the hydrogen production units represent an important component of the modernisation initiative.

As part of the deal, Air Products will be responsible for two large-scale air separation units, two large-scale auto-thermal reforming units and a hydrogen production unit within the Uzbekistan facility.

H2 View understands that the deal is expected to close in the fourth quarter of 2024.

“The agreement will contribute towards one of the Uzbekistan government’s main priorities, strengthening our nation’s energy security by increasing domestic supplies of hydrogen,” explained Bakhtiyor Fazilov, Founder of Saneg.

Fazilov added that the deal with Air Products will enable a “significant step forward” in the refinery’s long-term modernisation plans.

Seifi Ghasemi, the President and CEO of Air Products claimed the acquisition will “aid Uzbekistan in achieving more sustainable and energy-independent operations, contributing to a cleaner future for the Republic.”