Air Liquide said that it will invest $150 million to build a liquid hydrogen production unit with a capacity to produce nearly 30 tons of hydrogen per day -- enough to fuel around 35,000 fuel cell electric vehicles (FCEVs).

The company signed a long-term agreement with FirstElement Fuel Inc. to supply hydrogen for retail liquid hydrogen fueling stations in California.

Construction work on the plant is expected to begin in early 2019. The plant will also support other fuel cell vehicle and transportation markets in the region, such as material handling as well as forklifts and heavy duty trucks.

In addition to the long-term supply agreement, Air Liquide said that it plans to make an equity investment in FirstElement Fuel, following previous assistance to the company by Toyota and Honda.

Air Liquide employs more than 20,000 people in the U.S. in more than 1,300 locations and plant facilities. The company offers industrial and medical gases, technologies and related services to customers in the energy, petrochemical, industrial, electronics and healthcare markets.