With a motto that says ‘Inventing a Sustainable Future’, why do you believe Air Liquide is a trailblazer in sustainability and innovation within the industry?
Air Liquide has always prioritized sustainability, aligning with the advent of new technologies and innovation to meet the evolving needs of our customers and patients. Founded over a century ago, our journey through the industrial age into the modern era has been marked by a continuous evolution, especially in recent years with a strong focus on sustainability and the energy transition. This has guided the development of our technologies and the design of our facilities, enabling us to not only decarbonize our operations but also assist our customers in doing the same, thereby contributing to the creation of new, sustainable ecosystems globally.Our efforts in sustainability are evident in our role at the forefront of using large volumes of low carbon hydrogen to decarbonize energy-intensive industries such as chemicals and steel. We have successfully built facilities that operate at scale today, showcasing our commitment to proven technology.
Our autothermal reformers produce hydrogen while capturing up to 99% of CO2 emissions, exemplifying our leadership in delivering sustainable solutions. Furthermore, our initiatives extend into the transportation sector, where we've pioneered the use of renewable hydrogen and fuel cells for electric vehicles, and are actively involved in decarbonizing commercial and heavy-duty vehicles through significant partnerships and engagements.
What are the challenges and opportunities in the shift towards sustainable energy solutions, particularly regarding the cost of decarbonization?
The transition to sustainable energy solutions indeed faces challenges, primarily the significant cost difference compared to fossil fuels. However, Air Liquide has found like-minded partners and customers worldwide willing to take the initial steps towards decarbonization with our support. The commitment of various governments, notably the U.S. through the Bipartisan Infrastructure Law and the Inflation Reduction Act and the European Union, alongside member countries, plays a crucial role in overcoming these hurdles. These efforts are aimed at demonstrating sustainable energy solutions across regions, with substantial investments anticipated to stimulate further financial contributions from the industry, particularly on hard to abate sectors such as heavy duty transportation.
The establishment of hydrogen hubs, supported by the Bipartisan Infrastructure Law in the U.S., exemplifies this approach, aiming to significantly reduce carbon emissions and serve as a foundation for future sustainable initiatives. Similarly, in Europe, there is a strong push towards incentivizing the decarbonization of industry and transportation. These governmental efforts, combined with the willingness of companies to invest in sustainable infrastructure, underscore the critical role of incentivization and partnership in overcoming the cost barriers to sustainable energy transition, setting a path for a more sustainable industrial and transportation future.
Could you educate us on Air Liquide’s innovation playbook, considering the stagnant industry R&D growth?
Innovation at Air Liquide transcends traditional R&D, focusing on integrating new technologies at scale and leveraging existing infrastructure to foster large-scale decarbonization. This approach not only includes developing new technologies but also innovatively combining them to enhance efficiency and impact across various industries.
Our strategy involves building a more extensive network of production facilities interconnected by pipelines where feasible, enabling us to extend our decarbonization efforts across a broader spectrum, including the transportation sector.
Moreover, our innovation ethos is deeply rooted in integrating these technologies within the communities and markets where they are most needed, rather than exporting solutions over long distances. This community-focused approach ensures that our projects generate value-creating jobs locally, fostering community engagement and addressing specific needs such as literacy and STEM education. Through initiatives like reintroducing shop classes in over 70 U.S. high schools, we aim to equip individuals with valuable skills, addressing the structural shortage of welders in the country and reinforcing our commitment to being a good neighbor and an integral part of the communities we serve.
What is the single greatest challenge facing Air Liquide today?
At Air Liquide, we take it as our mission to invent a more sustainable future. This challenge offers a multitude of opportunities for our group, especially in terms of the energy transition. As the transition to a clean energy economy continues to accelerate, our customers turn to us to offer our technologies, expertise and innovation networks to help them reach their goals. At Air Liquide, we perceive these challenges as opportunities to expand our capabilities and harness our expertise to drive significant progress in sustainability and innovation.
Our ability to turn industry challenges into opportunities is rooted in mobilizing the necessary resources - technical, financial, and human - to execute our vision. Our focus is on leveraging our strengths and exploring new opportunities to make a meaningful impact, demonstrating our commitment to innovation and our proactive approach to addressing the pressing needs of our customers and the planet.
With the current focus on digital transformation and AI, how is Air Liquide positioning itself in this evolving landscape?
Air Liquide is at the forefront of the digital and AI revolution, contributing to the semiconductor industry for AI development and employing digital technologies and AI to enhance our operations and logistics. This digital transformation enables us to meet our customers' and patients' needs more efficiently and sustainably. Our engagement with digital technologies and AI extends beyond operational efficiency; it encompasses a broader vision of leveraging these advancements to improve all aspects of our business, from design and production to customer service and environmental sustainability.
Our deep dive into digital transformation and AI not only reflects our commitment to innovation but also aligns with our strategic goals in the energy transition, healthcare, and space exploration sectors. By continuously exploring and integrating new technologies, Air Liquide is poised to elevate its capabilities to address future challenges and opportunities, reinforcing our role in driving transformative change across industries and society at large.
How are the US and European markets positioned from an infrastructure perspective when it comes to the hydrogen fueling market?
Air Liquide is strategically positioned to capitalize on the burgeoning hydrogen fueling market, emphasizing the importance of leveraging and repurposing existing infrastructure to meet emerging needs efficiently. The Bipartisan Infrastructure Law and the Inflation Reduction Act in the US and similar incentives play a crucial role in fostering the development of hydrogen production and carbon capture infrastructure. Our approach prioritizes building infrastructure closer to where it's needed, reducing the necessity for extensive transportation networks and focusing on regional production hubs to streamline operations.
This localized strategy not only aligns with our ambition to move quickly and efficiently but also reflects a broader industry trend towards more integrated and community-focused energy solutions. By concentrating on building infrastructure that supports localized needs and interconnecting regional hubs, Air Liquide aims to maximize resource allocation towards production and carbon capture technologies, ensuring a balanced investment in infrastructure that drives meaningful progress in the hydrogen fueling market.
Can you elaborate on Air Liquide's carbon capture technologies and their efficiency?
Air Liquide is at the forefront of carbon capture technologies with our CryoCapTM technology portfolio, which can capture over 99% of CO2 emissions from key industrial processes. This technology combines membranes and cryogenics to purify and liquefy CO2 in a single unit, making it ready for sequestration or transport without the need for multiple steps. Importantly, this system operates on electricity, avoiding the use of additional chemicals, heat, or steam, and can be powered by renewable energy. This integration of various technologies exemplifies our commitment to innovative solutions for carbon sequestration.
Why isn't carbon sequestering more widely adopted?
The pace of carbon sequestration adoption is influenced by several factors, including technological readiness and the development of partnerships. While some companies are already exploring carbon use in their offerings, others are in the early stages of committing to sequestration projects. Major players, including some on the Gulf Coast, have shown interest in driving this initiative forward. The challenge lies in forming the right partnerships and securing permits, as our expertise in hydrogen production, carbon capture, and liquefaction technologies needs to be complemented by the oil and gas sector's knowledge in subsurface geology for effective sequestration.
What are the next key milestones for Air Liquide, and how does the company plan to continue its growth while reducing its carbon footprint?
Air Liquide is committed to delivering on its Advance plan, focusing on decarbonizing our assets and achieving sustainable growth. Our recent success is evidenced by a 4% year-over-year growth and a 5% reduction in our carbon footprint, signaling progress in growing our business sustainably. In fact, in just two years Air Liquide has already reached the margin ambition targeted for 2025, leading us to double our initial ambition. Looking ahead, we anticipate an inflection point in total carbon emissions by 2025, with continued investments in energy transition projects. Our efforts extend beyond just our environmental goals, including advancements in semiconductor technologies and healthcare, particularly in diabetes treatment in Europe, underscoring our holistic approach to innovation and sustainability.
Our future initiatives are broad and encompass a range of sectors. In semiconductors, we are advancing next-generation capabilities to meet customer needs. In healthcare, our diabetes treatment offerings in Europe are evolving, demonstrating our commitment to innovative solutions. Our overarching goal is to decarbonize industry while supporting our customers' growth and addressing global needs, positioning us at the forefront of technological advancements. This strategy is underpinned by a digital mindset, a commitment to community, and a focus on our employees, reflecting our comprehensive approach to growth and sustainability.