Air Liquide has recently issued a new €500 million ($541 million) green bond aimed at funding its energy transition projects.
This marks the company’s second green bond issuance, following a similar transaction in 2021. The 10-year bond, which yields 3.466%, was significantly oversubscribed, indicating strong investor confidence in Air Liquide’s ability to advance decarbonization technologies.
The proceeds from this green bond are earmarked for financing or refinancing flagship projects in low-carbon hydrogen, carbon capture, and low-carbon air gases. Green bonds, by definition, are debt securities designed to raise funds for environmental and climate-related projects. This financial tool allows companies to attract investments dedicated to sustainable development.
Jérôme Pelletan, Air Liquide’s Group Chief Financial Officer, highlighted that the success of the bond issuance demonstrates investor trust in the company’s strategy and capabilities in building sustainable energy projects. This confidence is crucial as the company navigates the complex landscape of energy transition, aiming to reduce its carbon footprint while meeting growing energy demands.
Air Liquide’s recent activities underscore its commitment to sustainability. In the Port of Rotterdam, the company is retrofitting an existing grey hydrogen plant with a carbon capture unit. This project is expected to produce significantly decarbonized hydrogen, aligning with global efforts to reduce greenhouse gas emissions.
Additionally, Air Liquide has partnered with Siemens Energy to open a multi-gigawatt electrolyser factory. Scheduled to reach a capacity of 3GW by 2025, this facility represents a significant step forward in the production of green hydrogen. Electrolysers play a pivotal role in generating hydrogen from renewable energy sources, and scaling up this technology is essential for reducing reliance on fossil fuels.
Air Liquide’s efforts can be compared with other major players in the hydrogen and industrial gas sectors. For instance, companies like Linde and Shell are also investing heavily in hydrogen production and carbon capture technologies. However, Air Liquide’s strategy of using green bonds to fund these initiatives highlights a proactive approach in securing dedicated financing for sustainability projects.
The company’s focus on retrofitting existing plants for carbon capture and expanding electrolyser capacity positions it well within industry benchmarks. These projects are crucial as the hydrogen sector moves towards achieving cost parity with traditional energy sources, a milestone anticipated around 2030.
