Renewable electricity: boosting power supply
Vision
Using renewable electricity to produce low-carbon industrial and medical gases is part of Air Liquide’s commitment to achieving carbon neutrality by 2050. While the production of oxygen and nitrogen generates no CO2 emissions, it does require large quantities of electricity, which needs to be decarbonized. The challenge is to secure long-term supply from renewable energy suppliers. Air Liquide relies on Power Purchase Agreements (PPAs) contracts which can run for up to 25 years providing the Group with long-term renewable electricity. 2023 saw considerable development in this area, with Air Liquide nearly doubling its supply reaching 2,600 GWh of renewable electricity per year for the coming years in many different countries, 60% of which is secured through PPAs.
“Many players are looking to source renewable electricity, making the PPA(1) market very tight. Our long-term commitments and solid business model make Air Liquide a preferred customer for renewable energy suppliers.”
2,600 GWhper year of renewable electricity secured in 2023
Action
In South Africa, where the Group operates the world’s largest oxygen production site at Secunda, Air Liquide has teamed up with its customer, Sasol, a leading global chemicals group, to source renewable electricity. Several PPAs were signed since 2022 with various local energy suppliers, now representing 580 MW of renewable electricity. This newly installed capacity will contribute to Air Liquide’s objective of reducing CO2 emissions linked to oxygen production at Secunda by 30 to 40% by 2031.
In Europe, where Air Liquide is stepping up plans to decarbonize its production units, the Group has once again signed a PPA with Vattenfall, one of Europe’s leading electricity producers and distributors, for an installed capacity of 115 MW. This second PPA in Benelux significantly strengthens Air Liquide’s supply of renewable electricity in the region. Concluded for a 15-year period starting in 2026, it will bring Air Liquide’s total installed renewable electricity generation capacity in Benelux to around 270 MW. This represents over 70% of the Group’s current electricity consumption in the region.
In China, the Group signed its first long term PPA for the supply of renewable electricity from solar farms with a total capacity of 200 MW. This amount secured by Air Liquide for the production of industrial and medical gases in China is equivalent to the electricity consumption of 300,000 Chinese households.
These new PPAs mark an important step in Air Liquide’s drive to secure renewable energy. The Group will be able to offer low-carbon molecules and solutions to its customers, supporting them in their decarbonization efforts.
(1) Power Purchase Agreements.