Air Products' Hydrogen and Technology to be Fueling Material Handling Operations at Four Defense Warehouses

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May 04, 2010, 10:00 ET

LEHIGH VALLEY, Pa., May 4 /PRNewswire-FirstCall/ -- Air Products (NYSE: APD) today announced that its hydrogen fueling technology has been selected for a demonstration project at the Defense Distribution Depot San Joaquin (DDJC) in Tracy, California. Upon successful negotiation of an agreement, Air Products' hydrogen and fueling technology will be used to power 20 Class I forklifts that will move warehouse materials in support of America's Armed Forces located around the world. The work at DDJC marks the fourth warehouse materials handling project Air Products has participated in with the Defense Logistics Agency (DLA) and Naval Surface Warfare Center.

Air Products will supply a hydrogen compression, storage and dispensing system at Tracy. The hydrogen to fuel the forklifts will be produced through an electrolysis process provided by Proton Energy. Air Products will also supply back-up gaseous hydrogen. Fueling of the forklifts, fitted with Plug Power's (Nasdaq: PLUG) GenDrive™ hydrogen fuel cell power units, is to begin in 2011. Air Products is a subcontractor on this project to the Center for Transportation & the Environment (CTE) in Atlanta, Ga. DDJC is in the military readiness business and is the Department of Defense's Western Strategic Distribution Platform, serving as one of the hubs of logistics activities for America's military.

"We are pleased to be working with the military on another hydrogen project. We also commend the DLA at the Defense Distribution Depot Susquehanna Pennsylvania for being the initial showcase and an early adopter for this technology," said Brian O'Neil, program manager for Hydrogen Energy Systems at Air Products. Details on Air Products' hydrogen fueling station technologies are provided at www.airproducts.com/h2energy.

Air Products is involved in three other DLA Projects in the United States including:

Joint Base Lewis-McCord (Tacoma, Washington)

Air Products will provide hydrogen compression, storage and two dispensing units to power 19 fuel cell powered material handling units fitted with Plug Power's technology, as well as a hybrid electric fuel cell bus. The hydrogen will be produced from anaerobic digester gas from a wastewater treatment plant located on base. The generated hydrogen will be compressed and stored in Air Products' tube trailers for transportation across the Base to a dispensing location to support the forklift and bus fuelings. Air Products is a subcontractor to CTE on this project. Fueling is scheduled to begin in late 2010.

Defense Distribution Depot Warner Robins (Robins Air Force Base, Georgia)

Air Products is providing two of its mobile fuelers, an on-site steam methane reformer, hydrogen compression, storage and a dispensing unit to fuel 20 Class I forklifts. Air Products is a subcontractor at this site to Concurrent Technologies Corporation of Johnstown, Pa. The project was placed on stream earlier this year.

Defense Distribution Depot Susquehanna Pennsylvania (New Cumberland, Pa.)

Air Products is going to be adding another hydrogen dispensing unit at this location to fuel both a shuttle bus and other potential applications. Air Products compression, storage and dispensing technology has been fueling a fleet of 40 forklifts since 2009. Plug Power's technology is in 20 of the forklifts at the site.

There are many advantages to using hydrogen powered forklifts and other material handling equipment. Hydrogen fuel cell-powered equipment needs refueling once or twice daily, depending on use. In contrast, traditional battery-powered equipment must be placed temporarily out of operation for battery replacement and required battery recharging approximately every four to six hours. Hydrogen fuel cell-powered equipment provides consistent power strength during use and does not experience decreased performance or wear down as traditional lead-acid battery units do as they near a required battery change out or recharge time. Additionally, hydrogen fuel cell forklifts are not adversely impacted by temperature or by operating in coolers and freezers, in comparison to traditional battery performance. Further, hydrogen-powered fuel cell equipment is more environmentally friendly because it does not involve lead-acid battery storage and disposal issues.

Air Products' hydrogen fueling technology is currently being used to fuel over 300 material handling vehicles including: fuel cell powered pallet trucks at Wegmans Retail Service Center in Pottsville, Pa.; fuel cell powered lift trucks at Central Grocers' new distribution center in Joliet, Ill.; hydrogen fuel cell powered forklifts at Nestle Waters North America in Dallas, Tex.; hydrogen fuel cell powered forklifts at the Defense Distribution Depot Susquehanna Pennsylvania in New Cumberland, Pa.; as well as hydrogen fuel cell powered forklifts at several other customers in the United States. In addition, mobile fueling equipment unique and patented by Air Products has been and continues to be deployed to a variety of customers for the purpose of demonstrating the technology in real world conditions.

Air Products, the leading hydrogen supplier to refineries to assist in making cleaner burning transportation fuels, has unique experience in the hydrogen fueling industry. In fact, in certain market applications, fueling rates of over 10,000 refills per year are occurring. These applications provide an opportunity to assess consumer experiences, evaluate product performance and to advance product improvements. The company has placed over 110 hydrogen fueling stations in the United States and 18 countries worldwide. Cars, trucks, vans, buses, scooters, forklifts, locomotives, planes, other material handling equipment, and even submarines have been fueled with this trend-setting technology that involves Air Products' know-how, equipment, and hydrogen. Use of the company's technology is increasing and is currently at 175,000 hydrogen fills per year.

Air Products has more than 50 years of hydrogen experience and is on the forefront of hydrogen energy technology development. Air Products has an extensive patent portfolio with over 50 patents in hydrogen dispensing technology. Air Products provides liquid and gaseous hydrogen, and HCNG (hydrogen/compressed natural gas) fueling, and has developed a variety of enabling devices and protocols for fuel dispensing at varied pressures. Hydrogen for these stations is delivered to a site via truck, produced by natural gas reformation, biomass conversion, or by electrolysis, including electrolysis that is solar and wind driven.

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.

About Plug Power

Plug Power Inc. (Nasdaq: PLUG), an established leader in the development and deployment of clean, reliable energy solutions, integrates fuel cell technology into motive, continuous and backup power products. The Company is actively engaged with private and public customers in targeted markets throughout the world. For more information about how to join Plug Power's energy revolution as an investor, customer, supplier or strategic partner, please visit: www.plugpower.com.

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

SOURCE Air Products