The Group’s record-high industrial investment in the largest low-carbon oxygen production plant in the Americas: a conversation with Matthieu Giard

This new investment will enable the Group to increase its oxygen production capacity in the state by 50%. Pending the final investment decision, this major project would mark the largest industrial investment in Air Liquide’s history. Matthieu Giard, Group Vice President supervising the clusters in the Americas and member of the Executive Committee, tells us more about this major industrial investment.

What does this new industrial project entail? 

Firstly, I would like to say that we are very proud that ExxonMobil, which has been a key customer of Air Liquide for 30 years, has chosen us for this unique project. There is no doubt that this is a pioneering project that will help decarbonize industry. Our Group will support ExxonMobil’s Baytown Low-Carbon Hydrogen project by creating a low-carbon industrial gas platform. This massive platform will provide the large volumes of air gases needed for the customer’s production process. Pending the final investment decision, the Group would build, own and operate four new Large Modular Air (LMA) separation units on the customer’s site in Baytown. These new LMAs will produce and supply a record daily volume of 9,000 tons of oxygen which will be used by ExxonMobil’s Autothermal Reformers (ATR) to produce low-carbon hydrogen. Our LMA units will also supply up to 6,500 tons of nitrogen per day to support the production of ammonia as a source of low-carbon energy for the export market. 

In addition, the LMA units will also produce large amounts of argon, krypton and xenon, enabling the Group and Airgas to strengthen its offering to Industrial Merchant customers.

What makes this project unique? 

This project is truly one of a kind. Firstly, because it will contribute to the creation of the largest low-carbon hydrogen platform in the world: ExxonMobil’s facility is expected to produce 1 billion cubic feet of low-carbon hydrogen every day and more than 1 million tons of ammonia every year, while capturing and permanently storing 7 million tons of CO₂ annually. This low-carbon hydrogen platform will be a catalyst for decarbonization on the Gulf Coast and further afield. 

Secondly, the four new LMA units we will build will increase our oxygen production capacity by 50% on the Gulf Coast, while reducing the CO₂ footprint per ton of oxygen by two-thirds. Air Liquide is already a leader in oxygen production on the Gulf Coast and this platform will be the largest oxygen production site in the Americas. In addition, we will have the largest source of argon in North America, along with a strategic and significant supply of rare gases.

This project involves an investment of $850 million. What does that mean for the Group?

Pending the final investment decision, this project would be the biggest industrial investment we've ever made as a Group. It will be a real game-changer for low-carbon oxygen production. This project demonstrates how we can leverage our footprint in the U.S. to contribute actively to industry decarbonization. What’s more, it reinforces our position as a leading player on the Gulf Coast, one of the world’s key industrial basins. 

Our mission is to develop our business by providing our customers with the best solutions in terms of safety, sustainability, reliability and efficiency for their industrial gas needs. That’s what we want to achieve with this large-scale project. In addition, this project is the perfect illustration of our ability to innovate in our core business and to think bigger. We already have 5 LMAs on the Gulf Coast, and with this new project, our Engineering & Construction (E&C) and Operations teams continue to push the boundaries of industrial projects, whether in terms of assembly, production or optimizing energy consumption. The technology behind LMAs, which was developed by E&C, makes it possible to provide flexible and large-scale modular ASUs that are highly efficient, using 25% less electricity. These LMAs will be primarily powered by renewable and low-carbon electricity, which will further reduce the project’s carbon footprint. Not only will we provide our customers with the best solutions, we will also be able to develop our business while controlling our own CO₂ trajectory.

How does this project fit in with the Group’s strategy?

This key investment project will support our ADVANCE plan while demonstrating our commitment to developing major low-carbon projects that combine financial and extra-financial performance. This project is a tangible example of our determination to embark on pioneering projects to contribute to a low-carbon future. Our platform project will be the first step in a significant industrial chain for decarbonization!

Any final words?

As you can imagine, developing such a complex project takes expertise, drive, creativity and resilience. Our teams’ commitment and professionalism have been instrumental in reaching the finish line. This investment will be a significant milestone for our Group and will provide a solid foundation for our future growth and sustainability efforts in the U.S.