Air Liquide is planning to invest up to $850 million to build, own, and operate four Large Modular Air separation units, along with related infrastructure, under a long-term binding agreement with ExxonMobil for its upcoming low-carbon hydrogen project in Baytown, TX. This investment will increase Air Liquide’s oxygen production capacity in Texas by 50%. Subject to a final investment decision, this project would represent the largest industrial investment in the history of Air Liquide Group. The new low-carbon platform in Baytown will primarily serve ExxonMobil, providing large quantities of low-carbon oxygen and nitrogen, as well as significant volumes of argon and rare gases like krypton and xenon for Air Liquide’s other customers. Utilizing low-carbon electricity and Air Liquide’s innovative solutions, the CO2 footprint of oxygen production will be reduced by two-thirds. Aligned with Air Liquide’s Advance strategic plan, this decarbonization project will also enhance the Group’s Industrial Merchant footprint in the U.S.
Driven by ExxonMobil’s substantial need for oxygen at their low-carbon hydrogen project in Baytown, Air Liquide has been chosen to establish a low-carbon industrial gas platform. Once the final investment decision is made, Air Liquide will build, own, and operate four new Large Modular Air (LMA) separation units at ExxonMobil’s site in Baytown to produce:
- A record volume of 9,000 metric tons per day of oxygen for low-carbon hydrogen production.
- Up to 6,500 metric tons per day of nitrogen to support the synthesis of low-carbon hydrogen into low-carbon ammonia for the export market as a low-carbon energy source.
The agreement also leverages Air Liquide’s existing pipeline infrastructure to promote the development of low-carbon hydrogen.
Additionally, due to the large volumes, the LMA units will produce significant amounts of argon, as well as krypton and xenon, bolstering the Group’s offering to the rare gases market.
These LMA plants represent a significant advancement in production output and energy consumption optimization, using 25% less electricity per tonne of oxygen produced. Primarily powered by renewable and low-carbon electricity, these LMA plants will further reduce the project’s carbon footprint.
The investment decision for Air Liquide’s Baytown Low Carbon Platform will be contingent on the development of ExxonMobil’s low-carbon hydrogen project, which depends on supportive government policies, necessary regulatory permits, and market conditions. ExxonMobil’s project aims to capture and permanently store 7 million tons of CO2 per year.
Air Liquide is a market leader in air gas production in the U.S., with a strong presence and network of pipelines along the Gulf Coast. Leveraging this existing footprint, the Group plans to expand its presence in the region and beyond through its Large Industry and Industrial Merchant (Airgas) activities.
