Air Liquide Signs Extensive Contract for Purchase of Renewable Energy in the Netherlands-June 21, 2022 09:08

(AOF)-Air Liquide has signed the world’s largest long-term renewable energy purchase (PPA) agreement with Vattenfall in the Netherlands for offshore wind capacity under construction. In addition to the previous supply agreement with Vattenfall announced in March 2021, this new PPA strengthens the partnership between the two groups. Air Liquide can also reaffirm Europe’s commitment to the decarbonization industry while reducing carbon dioxide emissions in line with its sustainable development goals.

The contract has a term of 15 years and is scheduled to begin in 2025. Renewable energy supplied by Vattenfall, one of Europe’s leaders in the production and distribution of electricity in Europe, is produced by Hollande Kust Zuid offshore wind. Farm (HKZ). This world-class offshore wind farm is currently being built off the Dutch coast without resorting to subsidies.

The agreement will allow Air Liquide to supply renewable energy to its current industrial and medical gas production assets in the Netherlands, more commonly in the Benelux.

This renewable power can also provide large-scale decarbonization projects in the region and accelerate the growth of customer demand for low-carbon gas.

The agreement will allow Air Liquide to cover more than 30% of the Group’s current electricity consumption in the Benelux.

AOF-Details

Key Point

-Born in 1902, the second largest industrial and medical gas in the world after Lindeplux Air.

-Sales of € 23.3 billion consisting of three branches: 96% gas and industrial services, engineering and construction, followed by GMT-Global Markets and Technology.

-Revenue balance by region – 38% in the Americas, 33% in Europe and 22% in Asia Pacific.

-A business model based on multi-year contracts (1/3 of the revenue generated by 20-year contracts) and long-term industrial partnerships. It provides good visibility of future results and operating profit of over 20%.

-Open Capital. 33% are individual shareholders and 2.5% are employees. François Jackow is the new Group Managing Director since June 2022.

-A sound balance sheet with a net debt rating of A has dropped to € 10.4 billion, or 58.5% of shareholders’ equity.

Task

-Advance 2015 strategy with three priorities 1-Financial performance: Annual sales increase by 5-6%, profitability of more than 10% of capital used, investment from 2022 to 2025 Reduction of absolute CO2 emissions from 2025 by decision, half of which is devoted to energy transfer-2-Industrial decarbonization by supply of low carbon industrial gas, CO2 capture and management-3-5 Technological innovations for the profession: hydrogen mobility, electronics, health, industrial merchants and high technology-space, cryogenic, quantum …;

-Innovation strategy aimed at raising more than € 300 million and aiming for outstanding operations, openness to core businesses or disruptive technologies: Global network of 6 innovation campuses, Academic Innovation Center with +400 partnerships / Dedicated Labs: Digital Factory for Data Expertise, Alident for IoT, m-Lab for Moleculars, i-Lab for deciphering Trends, 60% for energy migration … / Partnering with Chinese Funds CSE and Accelair Fund And funded Venture Capital ALIAD.

-2025 (start of absolute reduction of emissions) and 2035 (33% reduction compared to 2015), two intermediate targets, environmental strategy aiming for carbon neutrality by 2050 Hydrogen value by 2035 Investing $ 8 billion in the chain and partnering with Rothschild & CO and Solar Impulse to support SMEs providing environmental solutions and investing € 200 million to participate in the Global Decarbonized Hydrogen Funding Fund (Investment of 1.2 billion euros In the short term, along with Baker Hughes, Charg Industries, Plug Power, TotalEnergies and Vinci, has a leverage effect of 15 billion euros);

-The ability to pass on higher energy prices to customers.

-At the end of 2021, industrial investment opportunities will be € 3.3 billion, 40% of which will be in energy conversion.

French chemistry at full acceleration

After France reopened (135 chemistry projects spent € 2 billion), the country presented the France 2030 plan to give chemistry place pride. This perception supports the visibility of the sector, which plans to hire 120,000 people over the next five years. This is a significant increase when considering the total workforce (about 200,000). Corresponds to the aging of the active ingredients of chemicals. The goal is also to support the dynamics of the sector, which has enjoyed an average annual growth of 1.4% over 15 years, compared to a 1.2% decline across the industry. The rise of new sectors (batteries, biosources and materials for biotechnology products, activities related to the circular economy, etc.) is reshaping the market.

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