Linde North America has executed a new integrated supply agreement with Lima Refining Company (LRC) for hydrogen and steam utilities to its refinery in Lima, Ohio, the companies announced on Tuesday.

"Linde has a strong presence in the Lima Industrial Cluster and we are very happy to expand our business with our customer LRC, one of the most historic refineries in the world, and an anchor company for this cluster," said Pat Murphy, president of Linde Americas. 

LRC, a subsidiary of Husky Energy, is implementing a modernization project (crude oil flexibility, or COF) that will further strengthen the refinery and enable processing of a diverse set of crude oils to produce a range of product slates, according to project officials.

Linde already owns and operates two hydrogen plants, which supply hydrogen and steam to refining andpetrochemicals facilities, including LRC, and other industrial gas production assets in this cluster.

"LRC will use the additional hydrogen to hydrotreat product streams containing sulfur and other components," said Dr. Raghu Menon, vice president of Linde's tonnage business development for the Americas region. 

"To meet the overall demand, Linde will establish a new state-of-the-art SMR (Steam Methane Reforming) hydrogen plant, and invest in upgrades related to the existing facilities, to increase our cluster hydrogen production capacity and operational flexibility," he added. "Overall, Linde expects to invest approximately $100 million for the related enhancements in this cluster."  

It is anticipated that the new hydrogen plant (Linde Lima 3) will be on-stream during the first quarter of 2016. Linde's hydrogen plants in Lima will be operated as a single facility capable of producing more than 60 million standard cubic feet/day (MMSCFD) of hydrogen for the cluster companies. 

"We are delighted to announce these significant enhancements that help Linde expand our business presence in Lima," said Ray Carr, vice president of Linde's tonnage business in the Americas.