Air Products teams with World Energy on $2B SAF facility and scores $2M CEC grant

In California, Air Products is teaming up with World Energy to build a new $2 billion major expansion project at World Energy’s Sustainable Aviation Fuel (SAF) production and distribution hub in Paramount, California. The LA county facility is the world’s first commercial scale and North America’s only SAF production facility and its total fuel capacity will be expanded to 340 million gallons annually.

The long-term, take-or-pay agreement with World Energy includes Air Products’ construction and ownership of a new hydrogen plant to be operated by Air Products and renewable fuels manufacturing facilities to be operated by World Energy. The project is scheduled to be onstream in 2025 and continues Air Products’ leadership in driving the energy transition through world-scale projects. 

As part of the agreement, Air Products has extended its Southern California hydrogen pipeline network to supply hydrogen to the existing World Energy facility and to further increase supply reliability for all of Air Products’ hydrogen pipeline network customers in Southern California. The expanded pipeline network will also enable Air Products to provide low-or-zero-carbon hydrogen in the future. Air Products and World Energy will collaborate on innovations to transition to green hydrogen inputs, further reducing the carbon intensity of the fuels it produces. 

Following on the news with Air Products, the California Energy Commission (CEC) awarded the company a $2 million grant for its Blending Terminal Project in Paramount, Calif. The CEC approved the grant, named the “Ultra-Low-Carbon Fuel: Commercial-Scale Production Facilities & Blending Infrastructure” program, during its April 26, 2022 business meeting.