Annual Report 2023

Strategic Report

Close to this site and with the support of the French government, Air Liquide is now building a world-scale PEM (proton exchange membrane) electrolyzer, with a capacity of 200 megawatts, as part of the Normand’Hy project. The objective is to produce up to 28,000 tonnes of decarbonized hydrogen per year, beginning in 2026. This unique facility will be equipped with the latest-generation PEM electrolysis modules, produced by the new gigafactory operated by Air Liquide and Siemens Energy in Berlin, Germany (see page 24).

Half of the hydrogen produced by this electrolyzer will be used by the TotalEnergies refinery located in the same industrial basin. At the same time, TotalEnergies will provide renewable electricity to cover half the energy needs of Air Liquide’s Normand’Hy. This is an ambitious project: in addition to avoiding annual emissions of 250,000 tonnes of CO2, this will be the first low-carbon hydrogen supply chain in Europe. Many other projects like this are also being developed by the Group, particularly in Europe. This extensive portfolio makes Air Liquide a pioneer and a leader in the energy transition.

When it comes to large-scale decarbonized hydrogen, Air Liquide has already demonstrated its industrial capabilities in operating electrolyzers for the last 3 years in Bécancour, Canada. With a capacity of 20 megawatts to produce 8 tonnes of hydrogen every day, this is enough to power 2,000 cars, 16,000 forklift trucks, 275 buses or 230 large trucks!

This electrolyzer is at the heart of a new low-carbon gas production platform that is being developed by Air Liquide in Quebec to produce renewable hydrogen, oxygen, nitrogen and argon. In addition to the existing electrolyzer, the investment project of more than 140 million euros will include a new renewable oxygen and nitrogen production unit and significant liquid storage capacity, connected by a pipeline network to better serve local customers. This new infrastructure is part of a wider process to decarbonize Bécancour’s industrial zone and port, making it a unique place to produce renewable industrial gases and thereby develop offerings with high added value for our customers who are committed to the energy transition.

Air Liquide’s plans for hydrogen on the other side of the Atlantic do not stop there! The Group is now a partner of six regional hydrogen hubs created in 2023 to develop low-carbon hydrogen on a large scale in the United States (see page 25).

“We are proactively stepping up our efforts to develop a more sustainable industry. Our technologies, particularly our proprietary carbon-capture solution Cryocap™ and our electrolyzers for low-carbon hydrogen production, as well as our many collaborations and partnerships with customers position us as a leading player when it comes to the major challenge of the energy transition.”

Chris Clark Vice President of Large Industriesat Air Liquide

In addition to these investments in projects for carbon capture and hydrogen production through electrolysis, the Group is pursuing several other strategies to accelerate the energy transition. For instance, it is working with KBR, the world leader in ammonia technology, to provide solutions to produce low-carbon ammonia by using the autothermal reforming (ATR) process developed by Air Liquide. This technology, in which the Group is a world leader, is one of the most promising solutions for the large-scale production of low-carbon hydrogen; it is then combined with nitrogen to produce low-carbon ammonia. The solutions provided in collaboration with KBR will also contribute to the development of a global low-carbon hydrogen market because hydrogen, when transformed into ammonia, can easily be transported over long distances (see page 23).

Lastly, the Group is supporting sustainable mobility by contributing to the development of hydrogen ecosystems with major players including TotalEnergies, Lotte, Eneos and Trillium Energy Solutions (see page 34). The aim is to accelerate the adoption of hydrogen, particularly for heavy mobility.

All these strategic investments underline Air Liquide’s proactive approach to the creation of a low-carbon society.