Pilipinas Shell, Air Liquide break ground for hydrogen production unit

Pilipinas Shell Petroleum Corp. and partner Air Liquide Philippines Inc. broke ground for an integrated hydrogen manufacturing facility at the oil company’s refinery in Tabango, Batangas.

The groundbreaking ceremony for the hydrogen production plant was held on August 29, Pilipinas Shell said in a disclosure on Thursday.

The facility will be the first of its kind in the country and is targeted to improve the efficiency and competitiveness of the refinery, the company said.

“We’ve embarked on a partnership that will capitalize on the strength and expertise of both parties—Pilipinas Shell in the oil industry and Air Liquide’s 117 years of experience in the industrial gas space,” Pilipinas Shell Business Opportunity and Business Development manager Paolo Barredo said.

“This partnership will develop the capability to produce hydrogen which enables the refinery to process more crude oil varieties into more quality fuels. We expect to complete the project by end-2020 and reap the benefits from this venture starting 2021,” Barredo said.

The hydrogen unit will be built in Batangas, enabling the refinery to extract more diesel fuel compared with its current product slate.

A dedicated facility will capture and liquify carbon dioxide for other uses, according to Boon Hai Ng, Air Liquide Southeast Asia Region vice president.

“This undertaking is proof of our commitment to invest in projects that will enhance the competitiveness of our refinery to support the country’s energy needs while reducing our carbon footprint,” Cesar Romero, Pilipinas Shell country chairman, said. —Ted Cordero/VDS, GMA News