Following a record year in 2019, during which the Group signed 40 new long-term On-Site contracts, Air Liquide announces that it has signed 11 new agreements in the first quarter of 2020 for its Industrial Merchant customers. While increasing the stability of the activity’s business model, On-Site solutions reduce CO2 emissions and contribute to the Group’s Climate Objectives.
These long-term On-Site agreements between Air Liquide and its large Industrial Merchant customers are established to supply Nitrogen, Oxygen or Hydrogen for a minimum of 10 years. On-Site gas production units are installed, operated and maintained directly at customer sites. This is a competitive solution for customers providing local and reliable supply.
On-Site supply solutions also reduce air pollution and CO2 emissions by eliminating most of the energy consumed to liquefy and transport industrial gas. Indeed producing gas locally prevents the need to liquefy it for its transportation and significantly reduces the number of trucks and mileage needed to deliver gases to these customers. As such, On-Site supply saves about half of the carbon footprint compared to bulk liquid and contributes to Air Liquide’s Climate objectives.
These last 5 years, the number of new long-term contracts related to Air Liquide On-Site installations has steadily increased. Recent growth has been particularly driven by China and the U.S., through Air Liquide’s U.S.-based subsidiary Airgas. In the first quarter of 2020, the 40th On-Site contract in the U.S. since the acquisition of Airgas in 2016 was signed.
Matthieu Giard, Vice President and Executive Committee Member of Air Liquide Group, supervising the Industrial Merchant business activity said:
“The number of On-Site installations has been increasingly growing driven by the competitiveness and environmental benefits they offer. After a record year of new long-term contracts in 2019, the continued success in this quarter illustrates the recognition by our customers of our technological expertise in this area. On-Site contracts contribute to the stability of the Industrial Merchant sales over the long-term. Providing local and reliable supply to our customers, On-Site installations also contribute to a lower carbon footprint, in line with our Climate Objectives.”