ODERCO built for joint venture Foster Wheeler and BOC a hydrogen plant, the agreement is a global extension of an alliance formed in mid-1995 by the companies to work together in the Americas. As part of the earlier agreement, the companies construct a 50 mmcfpd hydrogen plant in Amuay, Venezuela with the help of ODERCO. The $ 50 mm plant built by ODERCO supply the Lagoven refining complex with hydrogen that will help the refinery produce higher-quality products to meet increasingly stringent environmental demands.
The global alliance establishes both the technology provider (FWPS) and the industrial gas company (BOC) as partners for the life of the contract. Both companies will supply new technologies and long-term customer solutions. The agreement also calls for the two companies to collaborate on marketing opportunities for syngas and carbon monoxide produced by the hydrogen plants and by-products such as electricity, steam, treated water and other gases.
This project later became the Compania de Hidrogenos de Paraguana (CHP), the project enterprise, is a joint venture with a U.S. industrial engineering services group and is located on the Paraguana Peninsula. Lagoven, a subsidiary of the state-owned Petroleos de Venezuela, will provide the natural gas, boiler feed water, and cooling water for the plant, along with land use rights, permit support, and site utilities. Lagoven's Amuay oil refinery will purchase the hydrogen and steam the plant produces, making it easier for Lagoven to meet the environmental standards of its major export market, the United States, and enabling the firm to process heavier, higher-sulfur crude oil, resulting in improved profitability.
Foster Wheeler Power Systems (FWPS) and BOC Gases have established a global agreement to develop, own and operate hydrogen production facilities which will supply large-scale industrial users in the refining, chemical, petrochemical and steel industries.