Industrial gases group Air Liquide is focusing more on hydrogen in its business model as it looks to take advantage of growing interest in low-carbon forms of the fuel.

Energy transition investments represented 42pc of the firm’s overall expenditure in the third quarter, according to Chief Financial Officer Jerome Pelletan.

“We are well positioned to be one of the companies to convert the high potential of hydrogen in the energy transition into concrete business opportunities,” he said on a third-quarter results call.  “Our strategy is to lead the emergence of industrial applications supporting transition into low-carbon manufacturing while enabling the mobility market.”

The firm launched the world’s largest clean hydrogen infrastructure fund on 1 October with a number of other companies. The $1.7bn Hy24 fund aims to finance projects across the hydrogen value chain.

Normandy basin

Air Liquide also announced a project to work with TotalEnergies to decarbonise the Normandy industrial basin. The firm will invest in a carbon-capture unit at an existing steam methane reforming hydrogen facility when CO₂ prices reach a certain strike price. Air Liquide did not name the price, but Pelletan says it is likely to be reached “sooner rather than later” and reiterates the investment will certainly happen before 2030.

Air Liquide also plans to build a green hydrogen electrolyser at the site as part of a move to meet growing demand for low-carbon hydrogen from local transport and industrial applications.

“This will create a unique pipeline system containing all the colours of hydrogen,” says Pelletan.

The firms will operate a carbon-capture-as-a-service model to help local industrial units to decarbonise, removing 700,000t/yr CO₂ from the region’s emissions.

“What is important to consider is that this project stands on its own without subsidies,” says Pellatan. “It is a full commercial project with solid economics.”

Hydrogen planes

Air Liquide has also formed a partnership with aircraft manufacturer Airbus and airport operator Vinci Airports to develop the use of hydrogen in the aviation sector.

Lyon airport will be the first to have hydrogen refuelling facilities after 2022, followed by the two major Paris airports.

“Our strategy is to lead the emergence of industrial applications supporting transition into low-carbon manufacturing” Pellatan, Air Liquide

“The objective is to build a European airport network to accommodate hydrogen aircraft,” says Pelletan, noting the firm wants to achieve this from 2035.

Air Liquide has also formed a partnership with French automotive supplier Faurecia to develop liquid hydrogen storage for trucks and heavy vehicles.

“This is quite important as we see trucks and commercial vans to be the first hydrogen application on the road at scale in Europe as soon as 2022 or 2023,” says Pelletan.

And the firm has started construction of an industrial-size green hydrogen production unit in Germany that will be linked to the existing local Air Liquide pipeline infrastructure.

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Author: Tom Young