Air Liquide has announced a major investment of up to $850 million to build, own, and operate four Large Modular Air separation units and related infrastructure along the U.S. Gulf Coast. This investment is part of a long-term binding agreement with ExxonMobil, supporting its planned low-carbon hydrogen project in Baytown, Texas.
This new initiative will enable Air Liquide to increase its oxygen production capacity in Texas by 50 percent. Pending the final investment decision, this project would represent the largest industrial investment in Air Liquide’s history. Matthieu Giard, group vice president overseeing the Americas clusters and a member of the executive committee, emphasized the significance of this investment, noting that it would mark a transformative moment for the company.
Project Details and Scope
The project will see Air Liquide establishing a low-carbon industrial gas platform at ExxonMobil’s Baytown site. This platform will produce and supply up to 9,000 tons of oxygen daily, which will be utilized by ExxonMobil’s Autothermal Reformers to generate low-carbon hydrogen. Additionally, the LMAs will produce up to 6,500 tons of nitrogen per day to support ammonia production, a key low-carbon energy source for the export market. The units will also produce significant quantities of argon, krypton, and xenon, bolstering Air Liquide’s offerings to its Industrial Merchant customers.
Giard highlighted the project’s unique nature, particularly its contribution to creating the world’s largest low-carbon hydrogen platform. ExxonMobil’s Baytown facility is expected to produce 1 billion cubic feet of low-carbon hydrogen daily and more than 1 million tons of ammonia annually, while capturing and storing 7 million tons of CO2 each year. This platform is anticipated to play a crucial role in decarbonizing the Gulf Coast and beyond.
Strategic Importance and Innovation
This $850 million investment will be the largest industrial commitment in Air Liquide’s history, representing a game-changer for low-carbon oxygen production. It underscores Air Liquide’s ability to leverage its U.S. footprint to actively contribute to industry decarbonization. The project also solidifies the company’s leadership on the Gulf Coast, one of the world’s most significant industrial regions.
Giard emphasized that the investment aligns with Air Liquide’s mission to provide safe, sustainable, reliable, and efficient industrial gas solutions. The project is a testament to Air Liquide’s innovation in its core business, with the LMAs utilizing 25 percent less electricity and being primarily powered by renewable and low-carbon energy. This will further reduce the project’s carbon footprint and allow Air Liquide to manage its own CO2 trajectory effectively.
Alignment with Air Liquide’s Strategy
The project supports Air Liquide’s ADVANCE plan, demonstrating its commitment to developing major low-carbon projects that combine financial and extra-financial performance. This platform project represents the first step in a significant industrial chain for decarbonization, illustrating Air Liquide’s determination to lead in the transition to a low-carbon future.
Final Thoughts
The development of this complex project requires expertise, creativity, and resilience, qualities that Air Liquide’s teams have displayed throughout the process. This investment will be a significant milestone for the Group, providing a solid foundation for future growth and sustainability efforts in the U.S.
For more information visit www.airliquide.com
