Decarbonization: Air Liquide Selected to Invest up to 850 MUSD in Largest Low-carbon Oxygen Production in the Americas
June 24 2024 - 11:45AM
Business Wire
Regulatory News:
Air Liquide (Paris:AI) plans to invest up to 850
million dollars to build, own and operate four Large Modular Air
separation units as well as related infrastructure in the framework
of a long-term binding agreement with ExxonMobil for its planned
low-carbon hydrogen project in Baytown, TX. This will enable Air
Liquide to increase its oxygen production capacity by 50% in Texas.
Pending final investment decision, this major project would mark
the largest industrial investment in the history of the Air Liquide
Group. This new Air Liquide Baytown low-carbon platform would serve
primarily ExxonMobil with vast amounts of low-carbon oxygen and
nitrogen, as well as significant volumes of argon and rare gases
such as krypton and xenon for Air Liquide’s other customers. Thanks
to low carbon electricity supply and Air Liquide’s innovative
solution, the CO2 footprint of oxygen production will be reduced by
two-thirds. In line with Air Liquide’s Advance strategic plan, this
decarbonization project will also contribute to enhancing the
Group’s Industrial Merchant footprint in the U.S.
Triggered by ExxonMobil’s enormous need for oxygen at their
low-carbon hydrogen project in Baytown, TX, Air Liquide has been
selected to establish a low-carbon industrial gas platform. Pending
the project’s final investment decision, Air Liquide would build,
own and operate four new Large Modular Air (LMA) separation units
at ExxonMobil’s site in Baytown, in order to produce and
supply:
- a record volume of 9,000 metric tons per day of oxygen
for the production of low-carbon hydrogen
- and up to 6,500 metric tons per day of nitrogen to
support the synthesis of low-carbon hydrogen into low-carbon
ammonia as a source of low-carbon energy for the export
market.
The agreement also enables leveraging on Air Liquide’s existing
pipeline infrastructure to foster the development of low-carbon
hydrogen.
In addition, thanks to large volumes, the LMA units will also
produce high amounts of argon, as well as krypton and xenon,
enabling the Group to strengthen its offering to customers in
the rare gases market.
These LMA plants provide a step-change both in terms of
production output and energy consumption optimization, as they
use 25% less electricity to make each tonne of oxygen. In
addition, these LMA plants are planned to be primarily powered by
renewable and low-carbon electricity, further reducing the carbon
footprint of the project.
The investment decision for Air Liquide’s Baytown Low Carbon
Platform will be linked to the development of ExxonMobil’s
low-carbon hydrogen project which is subject to supportive
government policy, necessary regulatory permits and market
conditions. ExxonMobil’s project is expected to capture and
permanently store 7 million tons of CO2 per year.
Air Liquide is a market leader in the production of air gases
in the U.S., with a strong presence and network of pipelines on the
Gulf Coast. Leveraging on this existing footprint, the Group
would be able to expand its presence in the region and beyond
through its Large Industry and Industrial Merchant (Airgas)
activities.
François Jackow, CEO of Air Liquide, said: "Our
Baytown Low Carbon platform project demonstrates our capacity to
innovate and leverage on our footprint in the U.S. to actively
contribute to the decarbonization of the industry. Through this new
agreement with ExxonMobil, Air Liquide is proud to support the
development of what is poised to be the world’s largest low-carbon
platform while reinforcing its gas offering in this key industrial
basin. In line with our strategic plan ADVANCE, this major
investment is a concrete example of our determination to embark on
first-mover projects to contribute to the emergence of a low-carbon
future.”
___________
Air Liquide is a world leader in gases, technologies and
services for industry and healthcare. Present in 72 countries with
67,800 employees, the Group serves more than 4 million customers
and patients. Oxygen, nitrogen and hydrogen are essential small
molecules for life, matter and energy. They embody Air Liquide’s
scientific territory and have been at the core of the Group’s
activities since its creation in 1902.
Taking action today while preparing the future is at the heart
of Air Liquide’s strategy. With ADVANCE, its strategic plan for
2025, Air Liquide is targeting a global performance, combining
financial and extra-financial dimensions. Positioned on new
markets, the Group benefits from major assets such as its business
model combining resilience and strength, its ability to innovate
and its technological expertise. The Group develops solutions
contributing to climate and the energy transition—particularly with
hydrogen—and takes action to progress in areas of healthcare,
digital and high technologies.
Air Liquide’s revenue amounted to more than 27.5 billion euros
in 2023. Air Liquide is listed on the Euronext Paris stock exchange
(compartment A) and belongs to the CAC 40, CAC 40 ESG, EURO STOXX
50, FTSE4Good and DJSI Europe indexes.
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version on businesswire.com: https://www.businesswire.com/news/home/20240624495202/en/
Corporate Communications media@airliquide.com
Investor Relations IRTeam@airliquide.com
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