Shanghai Chemical Industry Park Industrial Gases (SCIPIG), a subsidiary of Air Liquide, will invest over €200 million to build two hydrogen production units in Shanghai Chemical Industry Park (SCIP).

These units will replace the current supply, coming from a third party coal-based gasification unit, and will be equipped with CO2 capture and recycle technology alongside being connected to the existing SCIPIG local network.

Air Liquide plan to have the first phase of operation, complete by the year end 2023, with the ability to avoid the emission of 350,000 tonnes of CO2 per year.

The two units will have a total hydrogen (H2) production capacity of around 70,000 Nm3/h. The equipped carbon dioxide (CO2) capture and recycle units to contribute to the production of carbon monoxide (CO) for a total capacity of 28,000 Nm3/h.

The produced H2 and CO will supply Covestro China and Shanghai Lianheng Isocyanate Company (SLIC), a joint venture led by BASF and Huntsman, in the Park, as well as mobility, other industrial and electronics customers in the Yangtze Delta.

François Abrial, Member of the Air Liquide Group’s Executive Committee supervising Asia Pacific, said, “These new investments further enhance Air Liquide’s long-term collaboration with Covestro, SLIC and Shanghai Chemical Industry Park.”

“Leveraging our expertise in hydrogen production as well as carbon capture and utilisation, the project demonstrates our capacity to bring solutions for our customers which are reliable, competitive, and beneficial to the environment.”

“A specialist in the decarbonisation of the industry, Air Liquide is proud, with this project, to support Shanghai’s ambitious climate plan.”

SCIPIG already operate two other hydrogen units and four air separation units in the Park, which is host to a number of major international and local chemical companies.

Ma Jing, Director of Shanghai Chemical Industry Park Administration Committee, said, “We welcome SCIPIG’s new investment in the park. Bringing in innovative technologies, it will help us to transition away from coal- based gas production and drastically reduce associated carbon emissions.”

“At present, SCIP is actively implementing a new roadmap for green and low-carbon development in line with the national strategic deployment. SCIPIG’s new investment will play an important role in reducing carbon emissions in the park.”

“SCIP will, as always, assist in facilitating the construction and operations of this project and in promoting the use of low-carbon hydrogen to contribute to our common carbon peak and carbon neutral objectives.”