Praxair Will Build a VPSA Oxygen Plant for Valero Energy

In a deal valued at $20 million, Praxair, Inc. (Danbury, CT) will build, own and operate a 165 ton/d oxygen plant for Valero's Houston refinery. The project will double Valero's oxygen supply, which is currently being served by pipeline from Praxair's Gulf Coast network.

The new unit will employ Praxair's vacuum pressure-swing adsorption (VPSA) technology, which was pioneered by Praxair. With this process, air is separated without cryogenic liquefaction, by adsorbent beds that preferentially adsorb oxygen under pressure. When the pressure is relieved, the oxygen is desorbed, and the adsorbent bed is ready for reuse.

Valero will use the oxygen in its sulfur recovery unit (SRU) and fluid catalytic cracking unit (FCCU) to optimize the value of product yields from lower-cost feedstocks. "Third-party supply of oxygen and hydrogen from industrial gas suppliers such as Praxair is a cost-effective way for refineries to upgrade lower-cost raw materials into premium, clean-burning transportation fuels without major capital investment,'' says John Hohnholt, SVP of refining operations at Valero. Praxair also supplies oxygen and other industrial gases to Valero refineries in Texas City, TX and Krotz Springs, LA.

Edited by Nick Basta