With the help of Atlas Copco Mafi-Trench Company and Fives, Plug Power will develop hydrogen liquefaction plants (hydrogen liquefiers).
Hydrogen can be more easily transported by liquefying it, resulting in significant cost savings and a wider distribution area. Joule Processing is a process solution and engineered equipment provider with an impressive track record of success in the EPC (Engineering, Procurement and Construction) and oil and gas midstream industries. This collaboration follows Plug Power’s acquisition of Joule Processing earlier this month. Cliquified hydrogen could be 25 percent cheaper thanks to Joule’s well-proven cryogenic process technology, which was originally developed for the gas processing industry.
Plug Power will save approximately $200 million in capital expenditures over the next four years by bringing hydrogen liquefaction capabilities in-house with this acquisition. For a total consideration of up to $160 million, Plug Power purchased Joule, with $30 million upfront and $130 million in future earn-outs based on liquefier efficiency, third-party sales, and gross margin targets. Plug Power’s green hydrogen plant in Texas is using Joule’s liquefaction process.
“Plug Power manufactures the best electrolyzer solution in the world today,” said Andy Marsh, CEO of Plug Power. “And, we have the complete delivery network in place. The liquefier system is key to offering hydrogen in liquid form, which is ideal because of its superior energy density versus gaseous hydrogen, lower transportation cost and potential for powering trains, ships and airplanes. Joule’s capabilities complete this end-to-end green hydrogen solution for Plug Power, making us the only company in the world with such comprehensive offerings.”
“We are excited to join the Plug Power family as a key addition to the total end-to-end solution for the green hydrogen economy,” said Ben Victor, former CEO of Joule Processing and current Vice President of Hydrogen Energy Solutions for Plug Power. “We are now positioned with a large platform to deploy our low energy hydrogen liquefaction solution on a global scale, for both our internal projects and sales to third parties.”
Some of the biggest challenges in the liquid hydrogen production industry will be addressed through this long-term partnership between Plug Power and Atlas Copco Gas and Process and Fives. With Atlas Copco and Fives bringing their extensive technical and manufacturing expertise to the table, Plug Power will be better equipped to supply hydrogen liquefiers to its expanding fleet of green hydrogen production facilities as well as to third parties interested in implementing high-efficiency liquid hydrogen systems.
Plug Power expects to begin commissioning hydrogen liquefier trains with 15 ton per day and 30 ton per day capacities in 2023, following extensive development efforts. Plug Power’s growing national network of hydrogen plants will supply 500 tons of liquid green hydrogen per day by 2025 and 1,000 tons per day globally by 2028, presenting a significant opportunity for the partners to drive scale and standardization in hydrogen liquefiers. Plug Power is the world’s largest liquid hydrogen purchaser.
As part of the agreement, Plug Power will manufacture hydrogen liquefiers for its own use and third-party customers. Custom turboexpanders and compressors for hydrogen liquefaction plants are on the way from Atlas Copco Gas and Process. The brazed aluminum heat exchangers will be manufactured by Fives, who will also optimize their integration in cold boxes.
