Industrial gases major Air Liquide is to invest €25m in revamping its air separation unit (ASU) in Yulin, China.
The upgrade will see the existing steam-driven ASU converted to a more efficient electricity-driven system by the end of 2027, reducing the unit’s CO2 emissions by 224,000 tonnes annually and offering a 10% increase in oxygen production capacity.
The contract extension with a subsidiary of the Yanchang Group illustrates Air Liquide’s decarbonisation approach, which has already electrified two facilities in Tianjin, in line with the Chinese 2030/2060 carbon peaking and carbon neutrality goals. Total annual CO2 emissions reduction will ultimately reach 550,000 tonnes.
In the meantime, the group said it will ensure the continuity of services and supply to the customer.
The contract was signed in Beijing, during the visit of Emmanuel Macron, President of the French Republic.
Air Liquide has established since 2008 a long-term partnership with the Yanchang Group by supplying gas to its subsidiary Kaiyue.
Ronnie Chalmers, Air Liquide Group Vice President, in charge of supervising Asia Pacific, said the investment underscores Air Liquide’s commitment to grow and reduce the carbon emissions of its operations while contributing to its customers’ decarbonisation journey with tailored solutions. It operates around 140 plants in the country.
“The shift towards reducing carbon emissions is an ongoing movement in China, and our company is proud to be actively supporting it while managing to grow,” he said.
Air Liquide and Hyundai Motor Group recently reaffirmed their intention to drive hydrogen development by establishing key hubs in Europe, the US and South Korea.
Air Liquide signed a binding agreement with Macquarie Asia-Pacific Infrastructure Fund 2 to buy leading South Korean industrial gas company DIG Airgas for KW4.6trn ($3.3bn) in August.
Available now – China Pulse Pro report
To find out the latest data and trends in China’s fast-growing industrial gases market, order gasworld Intelligence’s Pulse Pro report. Pulse Pro delivers a richer, visual view of industrial gas markets that links market size, sector and gas-type breakdowns, supply mix, demand volumes, and multi-year forecasts into clear, actionable insights.