Air Liquide to modernize and lower the carbon footprint of two oxygen production units in Tianjin, China

  • China
  • Investment

Air Liquide will invest around 60 million euros to revamp two Air Separation Units (ASUs) the Group operates in the Tianjin industrial basin, in China. This announcement comes within the context of the renewal of a long-term industrial gases supply contract with Tianjin Bohua Yongli Chemical Industry Co., Ltd (“YLC”), a subsidiary of the Bohua Group. As part of this modernization plan, Air Liquide will significantly reduce the CO2 emissions linked to the production of oxygen and other gases with the adaptation of these ASUs so they can run on electrical power instead of steam. In addition, the Group has signed a three-party Memorandum of Understanding with YLC and the Tianjin Binhai District, notably to explore the implementation of Carbon Capture, Use and Storage (CCUS) solutions. 

Replacing the current steam supply of the ASUs by electricity will avoid the emission of 370,000 tonnes of CO2 per year. This is comparable to the equivalent electricity-related emissions of more than one million Chinese households. The two electrified Air Separation Units will produce oxygen and other air gases to supply YLC as well as other industrial customers in the Tianjin basin. They will have a total oxygen production capacity of ~4,000 tons/day. Planned to be operational mid 2024, the two ASUs will be modernized by Air Liquide Engineering & Construction without any disruption of supply to YLC and other local customers. 

This project also includes the possible supply of low carbon energy to the units through Power Purchase Agreements (PPAs) currently under discussion. This  would allow further emission reductions in the future.

This contract extends Air Liquide’s involvement in the development of the Tianjin basin, which has spanned more than 20 years, and hosts many major international and local chemical companies. Air Liquide owns and operates a total of 4 production sites and a large pipeline system connecting 3 industrial parks (Lingang, Dagang, Nangang) in the region, supplying industrial gases to Large Industries, Industrial Merchant and Healthcare customers.

François Abrial, Member of the Air Liquide Group’s Executive Committee supervising Asia Pacific, said,

This contract renewal and new investment further enhance Air Liquide’s long-term collaboration with Tianjin Bohua Yongli Chemical Industry. Leveraging our expertise in air gases production, the project demonstrates our capacity to bring reliable and competitive solutions for our customers while reducing carbon emissions. In line with its sustainable development commitment as part of its strategic plan ADVANCE, Air Liquide is proud to support Tianjin’s ambitious climate plan.

Wang Junming, President of Tianjin Bohua Group, stated,

We are pleased to further strengthen our partnership with Air Liquide in Tianjin. The new investment will provide a reliable supply of important raw materials and industrial gases to Yongli site in Tianjin. In addition, we will realize the synergy to reduce the carbon footprint of oxygen, nitrogen and other gases, and support Tianjin climate ambitions.