Air Liquide Invests in Two China Hydrogen Plants

22.07.2022 - Shanghai Chemical Industry Park Industrial Gases (SCIPIG), a subsidiary of French industrial gases group Air Liquide, will invest more than €200 million in two hydrogen plants and related infrastructure in China’s Shanghai Chemical Industry Park (SCIP).

The project will be implemented in phases, with the first stage going into operation from year end 2023. The two steam methane reformers will be designed and built by Air Liquide Engineering & Construction.

The units will have total hydrogen capacity of about 70,000 Nm3/h, replacing supply from an existing, third-party coal gasification unit. They will also be equipped with CO2 capture and recycle technology – avoiding the emission of 350,000 t/y of the greenhouse gas – and will contribute to the production of 28,000 Nm3/h carbon monoxide.

The hydrogen and carbon monoxide will be supplied under long-term contracts (15 years plus) to Covestro China and Shanghai Lianheng Isocyanate Company (SLIC) – a joint venture led by BASF and Huntsman – in the Park, as well as to mobility and other industrial and electronics customers in the Yangtze River Delta megalopolis.

“These new investments further enhance Air Liquide’s long-term collaboration with Covestro, SLIC and Shanghai Chemical Industry Park. Leveraging our expertise in hydrogen production as well as carbon capture and utilization, the project demonstrates our capacity to bring solutions for our customers which are reliable, competitive, and beneficial to the environment,” said François Abrial, member of Air Liquide’s executive committee supervising Asia-Pacific.

Ma Jing, director of SCIP’s administration committee, added that the Park is actively implementing a new roadmap for green and low-carbon development in line with China’s national strategic deployment.

On Mar. 1, Air Liquide China, SCIP Investment and Shenergy signed an investment agreement with SCIP to establish a joint venture that would build a hydrogen filling center in the Park, accelerating the deployment of hydrogen energy both in Shanghai and the Yangtze River Delta.

Construction of the first phase is expected to start in August 2022, aiming to build a filling center with a capacity of 24 t/d. The partners are considering increasing capacities with plans for liquefaction in a second phase. Liquefying hydrogen can achieve higher density storage.

Author: Elaine Burridge, Freelance Journalist