The pipeline of projects in Air Liquide’s energy transition portfolio is continuing to see ‘strong momentum’, despite a number of projects still pending FID (final investment decision) in the previous quarters.
That is according to Executive Vice President Pascal Vinet and CEO François Jackow, who spoke on an investor-relations earnings call yesterday (25th April).
Amidst a slowdown in terms of announcements due to ongoing discussions related to the US Inflation Reduction Act (IRA), the company is still seeing many requests from customers, says Jackow.
“We continue to see high interest in low carbon hydrogen supply in different parts of the world,” he said. “We have received in the past few months several orders to proceed in terms of engineering studies and preparation of the projects.”
“I do expect that some of those projects will be officially announced when the horizon is a little bit more clear in terms of regulation and political context, I think this is very positive.”
Vinet highlighted the Lhoist decarbonisation project, which aims to reduce emissions associated with lime production in France using Air Liquide’s Cryocap carbon capture technology.
“This project has [a] very good momentum. Let’s be clear, this is a medium-term project,” he emphasised. “It takes time to organise things. It takes time to prepare for such a project. You have to align quite a few elements.”
“It’s the capture at the site, it’s the pipeline to take the CO2 to the terminal in Dunkirk. All of those pieces are going along and are being worked on. Be patient, it takes time.”
When it comes to the company’s mid-term perspective on green and blue hydrogen, Jackow remains ‘extremely positive’ about its potential.
He added that he sees opportunities first in refining, especially around biofuels in Europe, the Americas and Asia, which is driving demand for low-carbon hydrogen.
This is followed by the chemical industry which holds ‘significant’ decarbonisation potential, especially concerning the basic chemical value chain.
Another area of interest for the company is the steel industry, which is seeing a shift from the blast furnace integrated steel mills to the DRI (direct reduced iron)-type unit.
“Those projects may take some time, maybe starting first with natural gas and then moving to hydrogen in the DRI unit, which could also be based on carbon capture,” said Jackow.
Carbon capture is another element of decarbonisation that Air Liquide is focusing on, especially when it comes to integrating technologies with existing processes.
“We want to focus on where we bring value to the supply of low carbon, hydrogen, oxygen [and capturing of CO2]. All that, in terms of mid-term perspective, is very positive.”
