Air Liquide Extends Strategic Plan, Focuses on Certainty Amid Climate Transition Uncertainties
Amidst uncertainties surrounding the global industry’s climate transition, Air Liquide, the industrial gas giant, has opted to defer the announcement of its new strategic plan until 2026. The company’s current plan, "Advance," was originally set to conclude in 2025.
Consequently, Air Liquide has extended the duration of the "Advance" plan to 2026, while simultaneously introducing new targets. The company now aims to enhance its operating margin by 4.6 points between 2022 and 2026, revised from the previous goal of a 3.2-point improvement between 2022 and 2025.
François Jackow, Air Liquide’s CEO, provided the rationale behind the decision, stating, "In the current environment, with uncertainties surrounding us, it is crucial to concentrate on what we can control."
Traditionally, Air Liquide has focused on the production of "gray" hydrogen, a highly carbon-intensive process that contributes to global warming. However, the company has also been actively developing low-carbon industrial hydrogen production methods, including water electrolysis powered by renewable or low-carbon sources such as nuclear energy, and carbon capture.
Despite the uncertainties, Jackow remains optimistic about the future, citing a "record-high growth pipeline" propelled by the signing of "major projects" by 2024, particularly in the realm of energy transition. Notably, Air Liquide was selected in June to invest up to $850 million alongside ExxonMobil in a low-carbon hydrogen project in Baytown, Texas.
Air Liquide occupies a pivotal position in the global industry as a designer and supplier of industrial gases across a diverse range of sectors, including hospitals, refineries, chemical plants, electronics, and the agri-food industry. Consequently, the company plays a crucial role in driving the transition towards a more sustainable future.
Key Insights from the Article:
- Air Liquide has extended its current strategic plan, "Advance," to 2026, while introducing new targets to enhance its operating margin.
- The company aims to focus on "what it can control" amidst uncertainties surrounding the climate transition.
- Air Liquide is actively developing low-carbon hydrogen production methods to meet the growing demand for clean energy solutions.
- The company has secured major projects in the energy transition sector, including a joint venture with ExxonMobil for a low-carbon hydrogen plant in Texas.
- Air Liquide remains optimistic about its "record-high growth pipeline" despite market uncertainties.
