Air Products Announces Two New Global Carbon Monoxide Projects

Air Products, the world's leading industrial gases company, is investing in the construction of two new carbon monoxide (CO) production plants in Texas, with a combined capacity of more than 70 million standard cubic feet per day. These facilities will strengthen the world's largest CO pipeline system.

Partagez:

Air Products will build two new large-scale carbon monoxide (CO) production plants in Texas, according to an announcement by the company. These plants will be located in La Porte and Texas City, will produce more than 70 million standard cubic feet of CO per day, and will be connected to the world’s largest CO pipeline system owned by Air Products on the Gulf Coast.

The company also signed new long-term CO supply contracts with LyondellBasell and Eastman Chemical Company. Both customers will be connected to these new facilities via Air Products’ expanding CO pipeline network and will benefit from the increased reliability of CO supply from the new La Porte and Texas City facilities.

Agreement with LyondellBasell and Eastman Chemical Company

CO production at La Porte will exceed 30 million standard cubic feet per day, with the vast majority supplied to LyondellBasell. The plant should be operational in 2024. Air Products also announced a long-term agreement to purchase syngas from LyondellBasell’s existing partial oxidation natural gas units, which will be used as part of the CO production process. This CO project will enable LyondellBasell to reduce its Scope 1 emissions. In addition, LyondellBasell and Air Products are collaborating on a carbon dioxide recovery project. Together, these projects will support LyondellBasell’s sustainability goals as outlined in its 2022 Sustainability Report.

In Texas City, the new facility will produce more than 40 million standard cubic feet of CO per day, with the vast majority supplied to Eastman. Once operational in 2026, this CO plant will be the largest single source of CO production in the world. As part of its ongoing efforts to improve supply reliability, Air Products will integrate this facility into its existing CO pipeline system by adding a new 35-mile connection in Texas City.

Frontier Infrastructure Holdings has signed an offtake agreement with manager Wild Assets for up to 120 000 tonnes of BECCS credits, underscoring the voluntary market’s growing appetite for traceable, high-permanence carbon removals.
Global carbon capture and offset credit markets could exceed $1.35 trillion by 2050, driven by private investment, technological advances, and regulatory developments, according to analysis published by Wood Mackenzie.
The Australian carbon credit market is experiencing temporary price stabilization, while the emergence of new alternative financial instruments gradually attracts corporate attention, subtly altering the commercial and financial dynamics of the sector.
Norway has launched a major industrial project aimed at capturing, maritime transport, and geological storage of CO₂, mobilizing key energy players and significant public subsidies to ensure economic viability.
A €21mn European grant, managed by EIB Global, will fund Egyptian projects aimed at cutting industrial emissions and boosting recycling, while a related €135mn loan is expected to raise additional climate investments.
Stockholm Exergi begins construction of a CO₂ capture facility in Stockholm, integrated with the expansion of Northern Lights in Norway, reaching a total storage capacity of 5 million tonnes per year by 2028.
Global emissions coverage by carbon pricing systems reaches 28%, driven by expanding compliance markets, where demand nearly tripled within one year, according to a World Bank report.
Vietnam initiates a pilot carbon market targeting steel, cement, and thermal energy industries to prepare for nationwide regulation starting in 2029.
The U.S. Environmental Protection Agency (EPA) proposes granting Texas direct authority to issue carbon dioxide injection permits, potentially accelerating the commercial expansion of geological CO₂ storage projects.
Höegh Evi and Aker BP received Approval in Principle from DNV for a maritime carrier designed to transport liquefied CO₂ to offshore storage sites in Norway.
Norne and the Port of Aalborg begin construction of a 15 mn tonne per year CO2 terminal, supported by an EU grant.
The Lagos State government has launched a programme to deploy 80 million improved cookstoves, generating up to 1.2 billion tonnes of tradable carbon credits.
The US Department of Energy has cancelled 24 projects funded under the Biden administration, citing their lack of profitability and alignment with national energy priorities.
In the United States, the carbon black market faces unprecedented fluctuations in the first half of 2025, driven by declining industrial demand and persistent raw material volatility, casting doubts over the sector's future stability.
European and UK carbon markets paused this week as participants await clarity on future integration of both emissions trading systems.
A consortium led by European Energy has secured prequalification for a Danish carbon capture and storage project in Næstved, aiming to remove 150,000 tons of CO₂ per year under a national subsidy programme.
The joint project by Copenhagen Infrastructure Partners and Vestforbrænding is among ten initiatives selected by the Danish Energy Agency for public carbon capture and storage funding.
Canadian broker One Exchange partners with Stephen Avenue Marketing to create OX CO₂, a carbon trading platform combining digital technology and human expertise.
Russia has filed a complaint with the World Trade Organization (WTO) challenging the European Union's Carbon Border Adjustment Mechanism (CBAM), deeming it discriminatory and protectionist towards its strategic commodity exports.
BP recommends extending the UK emissions trading system through 2042 and calls for alignment with the European market while supporting the inclusion of carbon removals in the scheme.