The Indian arm of Japan-based industrial gas company Air Water has begun production at its newly opened air separation unit (ASU) in Chennai, India.

The launch, which happened last month, coincided with the announcement that the firm will build a compressed hydrogen plant in Mobara City, Japan slated to start operation in May 2027.

Located in the state of Tamil Nadu, the ASU will produce approximately 230 tonnes per day of liquefied gas. Assuming constant operation, this includes 175 tonnes per day of liquid oxygen, 48 tonnes per day of liquid nitrogen, and 8.6 tonnes per day of liquid argon. 

According to Air Water India, it will reduce carbon dioxide emissions at the plant by 20,000 tonnes per year by using solar energy to power around 40% of the facility’s operations.

Air Water marked its entry into India in 2013 when it acquired Ellenbarrie Industrial Gases. In 2014, the company set up its local unit, Air Water India. In 2019, the firm expanded its presence by acquiring the industrial gas business in East India from Praxair India and Linde India’s southern region divestments.

The demand for industrial gases in the country is mainly driven by its steel industry, valued at over $100bn by last year. However, India’s rapidly growing electronics sector is also fuelling demand. The country exceeded $20bn in electronics exports within the first nine months of FY 2023–24 and is actively developing its semiconductor industry through programmes similar to the US Chips Act.

Air Water is also making further inroads into Japan’s compressed hydrogen industry. Through a joint venture with Kanto Natural Gas Development Company named Air Water K&O, the company plans to build a plant that will produce hydrogen by reforming natural gas produced in Chiba Prefecture.

The facility, which will be Air Water’s third such plant in the Kanto area, is expected to produce approximately 570 tonnes of hydrogen per year using natural gas as feedstock. The company has stated that the $18.8m facility will be fitted with a device capable of recovering 3,400 tonnes of CO2 per year.

This means hydrogen will be produced with less than 3.4kg CO2 per kg of gas produced, making it low carbon.

“We wish to respond to the … growing demand for electronics and future energy demand and contribute to customers’ reduction of CO2 emissions,” said the company.

Hydrogen will be sold by Air Water Green Design – a subsidiary that focuses on low-carbon hydrogen and captured CO2 products – and recycled CO2 will be sold in the form of dry ice.