Air Products will spend or commit at least $4bn in additional new capital to support the clean energy transition over the next five years, bringing its total commitment to first-mover projects to $15bn by 2027.
The industrial gas company today (25th July) made the pledge as part of its newly published ‘Third by 30’ carbon dioxide (CO2) emissions intensity goal for Scope 3 emissions, an addition to its existing Scope 1 and 2 goal to reach Net Zero from its operations by 2050.
In order to reach its ambitious targets, Air Products has identified tangible transition plans for new investments and modifications of existing company assets, including low- and zero- carbon hydrogen and carbon capture technologies.
Seifi Ghasemi, Chairman, President and CEO of Air Products, said, “These commitments complement the reinforce our growth strategy of building our business to deliver climate benefits and work alongside our customers on their sustainability journey.”
“Air Products is uniquely positioned to bring together its portfolio of technologies and legacy of experience to ensure the future climate benefits generated by our first-mover projects come online at a crucial moment in the energy transition.”
“We continue to see significant opportunities for hydrogen and carbon capture technologies, and our industry-leading $15bn capital commitment is further demonstration of sustainability being at the heart of our business and growth.”
It was in September 2020 when the US-based firm first launched its sustainability goal to reduce its CO2 emissions intensity by one-third by the year 2030 from a 2015 baseline – and ever since sustainability has been at the heart of its commitments.
To help accelerate its Net Zero mission, Air Products has said it will continually increase the use of renewable energy, convert its fleet of approximately 2,000 trucks to hydrogen, as laid out in July 2021, and implement additional actions to clean-up its carbon footprint.
Consistent with its Net Zero commitment, Air Products is also engaging with the Science Based Target Initiative (SBTi), focused on mobilising the private sector on climate action, to help support the development of a sectoral framework that will shape the methodology for the chemicals sector.
The future climate benefits from Air Products’ already announced hydrogen projects in execution are expected to eliminate more than 20 million tonnes of CO2 annually. Over a lifetime, the projects are expected to avoid more than 500 million tonnes of CO2.
News of Air the firm’s new commitments follow news that Air Products has already avoided 1.5 million metric tonnes of carbon emissions at its facilities since 2015 through improvements and purchased 27% of its electricity from renewable sources, as announced in June (2022).