Air Liquide intends to invest up to $850 million to construct, own, and operate four Large Modular Air Separation Units and associated infrastructure under a long-term binding agreement with ExxonMobil for its proposed low-carbon hydrogen project in Baytown, TX. This initiative will expand Air Liquide's oxygen production capacity in Texas by 50%. Subject to final investment approval, this project would mark the largest industrial investment in the history of the Air Liquide Group.

The new Air Liquide Baytown low-carbon platform is designed to primarily supply ExxonMobil with substantial quantities of low-carbon oxygen and nitrogen, along with significant volumes of argon, krypton, and xenon for Air Liquide's other clients. By utilizing low-carbon electricity and innovative solutions from Air Liquide, the CO2 footprint of oxygen production will be reduced by two-thirds. Aligned with Air Liquide's Advance strategic plan, this decarbonization initiative will also bolster the Group's presence in the U.S. Industrial Merchant market.

In response to ExxonMobil's significant oxygen demand for their low-carbon hydrogen project in Baytown, TX, Air Liquide has been chosen to establish a low-carbon industrial gas platform. Pending final approval of the project, Air Liquide plans to construct, own, and operate four new Large Modular Air (LMA) separation units at ExxonMobil’s Baytown site. These units will produce and supply:

•              An unprecedented daily production of 9,000 metric tons of oxygen for low-carbon hydrogen production.

•              Up to 6,500 metric tons per day of nitrogen to facilitate the conversion of low-carbon hydrogen into low-carbon ammonia, aimed at serving as an environmentally friendly energy source for export markets.

The agreement also allows for the utilization of Air Liquide’s current pipeline infrastructure to support the advancement of low-carbon hydrogen development.

Furthermore, due to their substantial capacity, the LMA units will generate significant quantities of argon, as well as krypton and xenon, enhancing the Group's capabilities in the rare gases market.

These LMA facilities represent a significant advancement in production capacity and energy efficiency, consuming 25% less electricity per ton of oxygen produced. Moreover, they are slated to be predominantly powered by renewable and low-carbon electricity, thereby further reducing the project's carbon footprint.

Air Liquide's decision to invest in the Baytown Low Carbon Platform hinges on the progress of ExxonMobil's low-carbon hydrogen project, contingent upon favorable government policies, regulatory approvals, and market conditions. ExxonMobil's initiative targets capturing and permanently storing 7 million tons of CO2 each year.

Air Liquide holds a dominant position in the U.S. air gases market, bolstered by a robust network of pipelines along the Gulf Coast. Building on this established footprint, the company is poised to enhance its regional and global presence through its Large Industry and Industrial Merchant (Airgas) operations.