Industrial gases group Air Liquide will invest €8bn ($8.8bn) in the hydrogen value chain by 2035, according to its latest strategy document.

Air Liquide spends more than €300mn on innovation every year, with more than 50pc dedicated to the energy transition and digital technology. It plans an average increase in industrial investment decisions of 45pc each year over the 2022-2025 period.

As a result of these investments the firm estimates it will see sales in hydrogen rise from current levels of €2bn/yr to €6bn/yr by 2035.

€6bn/yr – Targeted hydrogen sales by 2035

“In this high-potential market, the group intends to maintain its leading position by targeting the heavy mobility sector, including road, air, sea and rail,” says the document.

Air Liquide is involved at different points in the hydrogen supply chain, including production, storage and distribution.

Clusters focus

Its strategy will concentrate on industrial basins or clusters. “In this way [we] develop operational synergies that benefit the companies within each area,” the document says.

In the Normandy basin, Air Liquide is helping develop a low-carbon hydrogen network for local industries. It is investing in a carbon-capture unit at TotalEnergies’ steam methane reforming hydrogen facility in the region and constructing a 200MW electrolyser. Both projects will connect to the network.

And in South Korea, the firm is working with partners to advance the rollout of a hydrogen supply network for airports.

Building on past performance

Last year, the group completed its first issuance of green bonds, which raised €500mn dedicated to several sustainable development projects—notably in hydrogen and biogas.

It also helped launch the world’s largest clean hydrogen infrastructure fund in partnership with energy firm TotalEnergies and others. And it partnered with Italy’s Eni to develop infrastructure for hydrogen mobility in Italy.

The group is also committed to decarbonising its own operations, aiming to reduce its scope one and two emissions by 33pc by 2035 and to reach carbon neutrality by 2050.

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Author: Tom Young