Air Liquide invests 25 million euros to electrify and expand its Yulin ASU, boosting capacity and significantly cutting CO2 emissions in line with China’s climate goals.
Air Liquide has announced a significant step forward in its efforts to support industrial decarbonization in China, revealing plans to expand and electrify its existing oxygen production facility in Yulin, located in Shaanxi Province. The company will allocate nearly 25 million euros to modernize its Air Separation Unit (ASU), a critical piece of infrastructure within this major industrial region. This initiative comes as part of a renewed long-term agreement with a subsidiary of the Yangchang Group, a prominent energy and chemical industry corporation in China.
Through this revamp, Air Liquide aims to immediately reduce carbon emissions generated by the current steam-powered ASU. The existing system will undergo a complete transformation into an electricity-driven unit, making the operation substantially more energy-efficient. This shift is expected to cut an estimated 224,000 tonnes of CO2 emissions annually as soon as the upgrade is operational. Furthermore, by progressively incorporating low-carbon electricity sources into the plant’s operations from the beginning, Air Liquide anticipates total yearly reductions could reach as high as 550,000 tonnes of CO2.
Beyond the environmental benefits, the upgraded facility will also boost production efficiency. Once the electrification process is complete, the ASU’s oxygen output capacity will increase by approximately 10%, strengthening Air Liquide’s ability to meet growing industrial demand in the region. The modernized, electricity-powered plant is scheduled to begin full operations by the end of 2027. During the construction and transition phases, Air Liquide has committed to maintaining uninterrupted service and gas supply to its customer.
The signing of this contract took place in Beijing during the official visit of French President Emmanuel Macron, reinforcing the broader alignment between French industrial innovation and China’s national carbon reduction goals. China’s 2030 carbon peaking target and its 2060 carbon neutrality pledge remain central to the country’s industrial strategy, and Air Liquide’s project contributes directly to these national ambitions.
Air Liquide’s relationship with the Yangchang Group spans nearly two decades, beginning in 2008 with long-term gas supply agreements with its subsidiary Kaiyue. This continued collaboration highlights the strong trust and strategic alignment between the two organizations.
Ronnie Chalmers, Vice President of Air Liquide Group with oversight of the Asia Pacific region, emphasized the importance of the company’s long-standing partnership with Yanchang Petroleum Group. He noted that the new investment reaffirms Air Liquide’s dual commitment: expanding its industrial footprint in China while simultaneously lowering the carbon intensity of its own operations. Chalmers added that China’s ongoing transition toward lower emissions is accelerating, and Air Liquide is proud to play an active role in supporting both the country’s industrial needs and its broader sustainability objectives.
Overall, this project reflects a major step in Air Liquide’s global decarbonization strategy and demonstrates how technological innovation and partnership can drive meaningful progress in reducing industrial emissions.
