Significant Progress in Low-Carbon Hydrogen Production Project in Shanghai Chemical Industry Park

Shanghai Chemical Industry Park Industrial Gases Co., Ltd (SCIPIG), a subsidiary of Air Liquide (Paris:AI), has made significant progress in its project to build two low-carbon hydrogen production units and related infrastructure in the Shanghai Chemical Industry Park (SCIP).

Green Loan for Low-Carbon Hydrogen Production

SCIPIG has successfully secured a bilateral green loan for 500 million RMB (approximately 67 million euros) with BNP Paribas as the sole lending bank. This groundbreaking green loan adheres to the strict criteria outlined in the China-EU Common Ground Taxonomy, focusing on green hydrogen production. It also aligns with the international Green Loan Principles 2021 and the Equator Principles (2020). In fact, it is the first green loan of its kind worldwide to support low-carbon hydrogen production in accordance with the new China-EU Common Ground Taxonomy.

Environmental Considerations

As part of SCIPIG’s commitment to sustainability, the company will closely monitor the environmental benefits of the project. Regular reports will be provided to the lender, highlighting key indicators such as annual avoided greenhouse gas emissions and hydrogen production volume. With the replacement of a coal-based gasification unit, the new low-carbon hydrogen units are projected to prevent the emission of 350,000 tonnes of CO(2) annually. This impressive achievement is equivalent to eliminating the electricity-related emissions of one million Chinese households.

Air Liquide’s Green Financing Efforts

Air Liquide has been at the forefront of green financing initiatives. The company issued its first SRI-labeled bond in 2012 to support the expansion of its Home Healthcare business. In 2019, Air Liquide established a sustainability linked syndicated credit line, further demonstrating its commitment to sustainable financing practices. Most recently, in 2021, the company successfully issued a green bond worth 500 million euros. The funds raised from this bond will be dedicated to financing and refinancing various sustainable projects, with a special focus on hydrogen, biomethane, and oxygen initiatives.

Air Liquide Group Receives Green Loan for Low-Carbon Hydrogen Production

Reinforcing Commitment to Environmental Standards

Jérôme Pelletan, Chief Financial Officer of Air Liquide Group, has expressed his satisfaction with the company’s recent achievement of securing a green loan. The loan serves as a testament to Air Liquide’s dedication to supporting projects that uphold the highest environmental standards. Notably, this marks the first green loan ever granted to support low-carbon hydrogen production in accordance with the new China-EU Common Ground Taxonomy. This accomplishment further demonstrates Air Liquide’s longstanding pioneering spirit in sustainable financing. As part of its ADVANCE strategic plan, the company continues to prioritize the development of reliable and competitive solutions that enable its customers to reduce their carbon footprints.

A Leading Player in Gases, Technologies, and Services

Air Liquide Group is a prominent global presence in the gases, technologies, and services sector, catering to both industry and healthcare needs. Operating in 73 countries, the company boasts a workforce of approximately 67,100 employees, serving over 3.9 million customers and patients worldwide. Oxygen, nitrogen, and hydrogen are fundamental small molecules that play crucial roles in various aspects of life, matter, and energy. These molecules form the scientific core of Air Liquide’s operations and have been at the forefront since its establishment in 1902.

A Strategic Plan Geared towards Future Growth

Ensuring a balance between present actions and future preparations lies at the heart of Air Liquide’s strategic approach. The company’s ADVANCE plan, extending to 2025, aims to achieve global success by integrating financial and extra-financial dimensions. With a focus on emerging markets, Air Liquide leverages significant strengths, including a resilient business model, a culture of innovation, and technological expertise. The Group actively develops solutions that contribute to climate and energy transition, with a particular emphasis on hydrogen. Additionally, it invests in healthcare, digital solutions, and high technologies to stay ahead of the curve.

Impressive Financial Performance and Market Presence

In 2022, Air Liquide recorded revenues exceeding 29.9 billion euros, highlighting its financial prowess. The company’s stock is listed on the Euronext Paris exchange (compartment A) and is included in esteemed indexes such as CAC 40, CAC 40 ESG, EURO STOXX 50, FTSE4Good, and DJSI Europe, underscoring its market significance.