US industrial gases producer Air Products has agreed to acquire five hydrogen steam methane reformer (SMR) hydrogen plants from PBF Energy for $530 million as part of a deal that includes the long-term supply of hydrogen from already operating plants to PBF refineries.

The transaction is targeted to close during the third quarter of Air Products’ 2020 fiscal year, which ends in March 2021.

With a combined nearly 300 million standard cubic feet (8.5 million m³) per day of production capacity, the plants to be acquired are located in Torrance and Martinez, California, and Delaware City, Delaware, USA.

In addition to the five SMR plants, Lehigh Valley, Pennsylvania-based Air Products will also secure a long-term hydrogen sale of gas agreement with an existing customer who is one of the largest independent refiners in North America, said Seifi Ghasemi, chairman, president and CEO. 

Air Products’ strong balance sheet puts it puts it in an outstanding financial position to execute its strategy of investing in long-term onsite deals, which includes asset acquisitions like this, Ghasemi added

Thomas Nimbley, PBF Energy’s chairman and CEO, said expanding his company’s long-standing relationship with Air Products will ensure that its facilities will continue to be supplied by a premier provider.

Based at Parsippany, New Jersey, PBF is one of the largest independent refiners in North America, operating through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio.