Air Liquide’s subsidiary Shanghai Chemical Industry Park Industrial Gases Co. (SCIPIG) has signed a bilateral green loan for 500m RMB ($69m) to build two low-carbon hydrogen production units in the Shanghai Chemical Industry Park (SCIP).
Set to replace third-party coal-based hydrogen production, the new units are expected to produce around 70,000Nm3/h, avoiding the emissions of around 350,000 tonnes of carbon dioxide (CO2) per year.
Last year (2022), Air Liquide announced SCIPIG would invest over €200m ($224m) in building the two steam methane reforming (SMR) units and related infrastructure.
Set to be equipped with CO2 capture and recycle technology, the units would leverage pre-existing air separation units in the park, and through over 15 year-long contracts, the units would produce hydrogen and carbon monoxide for the supply of Covestro China and Shanghai Lianheng Isocyanate Company in the park, as well as other end-users in the Yangtze River Delta.
SCIPIG has said it will monitor the environmental benefits on a regular basis and will report the annual avoided greenhouse gas (GHG) emissions and hydrogen production volumes on an annual basis.
With BNP Paribas acting as the sole lender, the loan is said to come as the first in alignment with the China-EU Common Ground Taxonomy, which offers stringent criteria on hydrogen production and emissions threshold for the definition of low-carbon hydrogen.
“This green loan is a recognition of Air Liquide’s ability to uphold projects abiding by the highest environmental standards,” said Jérôme Pelletan, Chief Financial Officer of Air Liquide Group.
“It also illustrates our historical pioneering spirit in sustainable financing as this is the first green loan to support low-carbon hydrogen production in alignment with the new China-EU Common Ground Taxonomy,” Pelletan added.
Source: Air Liquide
