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Air Products announces plans for renewable energy plant in Tees Valley

Air Products today announced plans to build a new 49MW renewable energy plant in Tees Valley.

The proposed scheme, to be located at the Reclamation Pond site (adjacent to the North Tees Chemical Complex) near Billingham, will generate renewable electricity for up to 50,000 homes in the North East. It is anticipated that the scheme will create up to 50 permanent jobs and 500-700 jobs during its three-year construction period.

The renewable energy plant, which requires planning consent from Stockton on Tees Borough Council and an environmental permitting consent from the Environment Agency, will use advanced gasification technology provided by AlterNRG to convert pre-processed waste to baseload, renewable power. By diverting waste from landfill the proposed plant will offer an environmentally-friendly solution for the production of renewable energy in the North East. The plant also has the potential to generate renewable hydrogen for mobile and stationary energy applications and is being considered for a demonstration of Waste2Tricity’s fuel cell technology, potentially aiding moves in the North East to develop hydrogen technology.

As part of the planning and consultation process for the project an initial scoping document, which details the project and the measures that will be taken to consider its environmental impact, has been issued today to Stockton Borough Council. A full environmental assessment and programme of public and regulatory stakeholder consultation, with stakeholders such as the Environment Agency and Natural England, will take place over the coming months. If successful, it is anticipated that formal planning and environmental permit regulation applications will be submitted later this year.

Ian Williamson, European Hydrogen and Bio Energy Director at Air Products said, “Consultation with local stakeholders and residents about our plans is an important part of the project’s development process and we will be hosting drop-in sessions for local people over the coming months to explain the need for the project, the environmental merits of using the latest technologies and also the economic benefits to Teesside.”

Commenting on the merits of generating energy from waste, Ian Williamson added: “The UK continues to dispose of large volumes of waste to landfill, some of which could be converted to energy using technology such as advanced gasification. The technology that Air Products is proposing to bring to Teesside provides an alternative solution to the disposal or incineration of waste, with over 90% of the waste arriving to the site being diverted from landfill and used as a renewable energy resource.”

The project has received support from regional development agency One North East, which has invested £250,000 from the Tees Valley Industrial Programme (TVIP), to investigate the feasibility of constructing the proposed plant at the Reclamation Pond site. The site, owned by Teesside-based Impetus Reclamation, has been renamed the New Energy and Technology Business Park (NETBP) and will focus on energy efficient production facilities and the conversion of waste to energy, waste to fuels and other related products.Working in collaboration with Impetus Waste Management, Air Products will now carry out a full assessment into the availability of waste, the suitability of the site and the need for baseload renewable power in the area.

One North East is also investing £2.2m in a major land reclamation project at the New Energy and Technology Business Park (NETBP) through the TVIP.

One North East Chief Executive, Alan Clarke, said: “We are delighted with this signal of intent from Air Products and we are committed to making sure the Tees Valley is ready to grab investment opportunities like this one. This is especially true for industries like the energy and process sectors, in which the North East already has significant strength.

“The Tees Valley Industrial Programme is supporting the area’s industrial transition to a low carbon economy and advanced manufacturing. The land remediation work at the NETBP is a great example of our approach and will create a major new industrial site that could be the home for significant new development, supporting hundreds of new low-carbon, advanced manufacturing jobs.”

Air Products plans have also been welcomed by a number of local organisations including NEPIC, North East Chamber of Commerce, Renew@CPI and Tees Valley Unlimited.

Neil Kenley, Strategic Investment and Marketing Director at Tees Valley Unlimited explained, “Alongside the creation of indirect and direct jobs, projects such as Air Products’ proposed facility are placing our region at the forefront of renewable energy resources that can provide a secure and diverse source of power for the future and help meet the UK’s renewable energy targets.”

About Air Products
Air Products (NYSE:APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. In fiscal 2009, Air Products had revenues of $8.3 billion, operations in over 40 countries, and 18,900 employees around the globe. For more information, visit www.airproducts.com.

***NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.

About ONE North East
One North East is the Regional Development Agency for North East England.You can now follow One North East on Twitter at http://twitter.com/OneNorthEast

About the NETBP and Tees Valley Investment Programme (TVIP)
The TVIP investment will open up 120 acres of derelict land for development by the end of 2010 which could significantly boost the contribution that energy generation and renewables are making to the North East’s low-carbon economy. The business park has been identified as a key location for this type of development in the Tees Valley Unlimited North Tees South Tees study and will focus on energy efficient production facilities and the conversion of waste to energy, waste to fuels and other related products.

About Impetus Waste Management and Impetus Reclamation
Impetus Waste Management (IWM) has many years expertise in the management of waste for customers across the UK and owns and manages a number of landfill facilities in the North East. IWM and Impetus Reclamation have over the last five years acquired a significant asset base with the intention to roll out the NETBP concept across the North East and other areas of the UK. Each Business Park will be carefully selected and developed to create a unique Platform which will attract New Technology Businesses with connectivity to local services and utilities and the ability to easily export output products.

About AlterNRG
Alter NRG is pursuing alternative energy solutions to meet the growing demand for environmentally responsible energy in world markets. The Company’s vision is to commercialize growth technologies through developing environmentally sustainable and economically viable alternative energy projects. The Company’s objective is to further commercialize the Westinghouse Plasma technology, a wholly owned subsidiary, to provide renewable and clean energy solutions from a wide variety of feedstocks, and providing a wide variety of energy outputs – including liquid fuels like diesel, and ethanol, power, and syngas.

About Waste2Tricity
Waste2Tricity is a new British venture established to implement the most efficient energy conversion process available, – by intending to implement a unique combination of new generation AFC Energy alkaline fuel cells with plasma gasification and other existing proven technologies. The system will therefore have significant environmental and cost benefits over other methods of electricity generation. For more information, visit Waste2Tricity at http://waste2tricity.com

Media enquiries:
(Air Products)
Sarah Pryor, tel: 00 44 (0)1932 249747, pryors@airproducts.com

(One North East)
Paul James, PR Specialist Advisor, tel 0191 229 6429, mobile 07795 267126, paul.james@onenortheast.co.uk
(Impetus Waste Management)
Susan Miller, tel: 00 44 (0)1740 661216, susan.miller@impetuswaste.com

Investor enquiries:
Nelson Squires, tel: (610) 481-7461; e-mail: squirenj@airproducts.com.


1. Advanced gasification technology is used to convert a variety of feedstocks (for example non-recyclable waste) into an energy rich gas stream product which can be used to generate renewable power, hydrogen or biofuels. A non-hazardous by-product (slag) is also produced which could potentially be beneficially used in the manufacture of other products such as floor tiles, insulation, landscaping blocks or road aggregate.

2. AlterNRG’s Westinghouse Plasma solution – which will be used at the proposed facility – has been operating in waste destruction and generating energy from waste for over 15 years. Two existing facilities in Japan have been processing household and other industrial wastes into energy for over 7 years and have proven to be reliable and far below the stringent Japanese emission standards. The proposed Air Products facility will incorporate the best available clean-up technology from AlterNRG to reduce emissions further, making for clean and renewable energy production.

3. The proposed scheme is eligible for Renewables Obligation Certificates under the Renewables Obligation (RO). The RO is the main support scheme for renewable electricity projects in the UK and places an obligation on UK suppliers of electricity to source an increasing proportion of their electricity from renewable sources. A Renewables Obligation Certificate (ROC) is a green certificate issued to an accredited generator for eligible renewable electricity generated within the United Kingdom and supplied to customers within the United Kingdom by a licensed electricity supplier. One ROC is issued for each megawatt hour (MWh) of eligible renewable output generated.
4. Air Products representatives will be available to discuss the proposed facility at a series of drop-in sessions for local residents to be arranged. Further information will be available at www.airproducts.co.uk/teesvalley