3 TWh per year of new long term PPAs began in 2025 across carbon intensive markets including China, South Africa and India
Total PPA portfolio now equivalent to 3.5 million tonnes of annual CO2 abatement with full ramp up by 2027
More than 40 percent of Air Liquide’s purchased power is now low carbon as the Group pursues decarbonization through energy mix, electrification and CCS
Air Liquide launched 2025 with expanded low carbon electricity procurement at industrial scale, initiating multi year PPAs totaling 3 TWh per year to support its decarbonization roadmap and customers’ emissions goals. The move is part of the Group’s Climate Transition Plan which targets structural transformation of its power mix in markets where electricity grids remain carbon intensive.
The company concentrated new agreements in China and South Africa and added India as a new geography for low carbon PPAs. These markets offer high marginal abatement potential given reliance on coal and are central to Air Liquide’s global production footprint. The Group has long argued that voluntary clean power sourcing can produce faster real world decarbonization than waiting for national grid transitions alone, particularly in emerging and industrial economies.
Low Carbon PPAs as a Decarbonization Lever
Air Liquide has signed PPAs since 2020 that together represent a reduction of 3.5 million tonnes of CO2 per year once fully operational by 2027. The company now sources more than 40 percent of its purchased electricity from low carbon sources ranging from renewables to nuclear. The strategy provides both operational emissions reduction and a lower carbon intensity product for customers across chemicals, healthcare, steel, and semiconductor markets.
PPAs serve as one of three core levers in the Group’s decarbonization plan alongside asset level efficiency and carbon capture and storage. Electrification of remaining non electrified Air Separation Units is expected to further amplify the effect of clean power sourcing. The recently announced electrification of the Shaanxi ASU in China, set for completion following 2025, is projected to reduce emissions by up to 550,000 tonnes per year when paired with low carbon electricity.
Corporate and Customer Incentives
The procurement push reflects growing customer demand for lower carbon industrial gases as downstream industries pursue Scope 3 and supply chain emissions reductions. Voluntary clean power procurement allows Air Liquide to meet those expectations without waiting for policy driven grid decarbonization. The approach has also gained favor among investors as part of broader climate transition strategies focused on credible and measurable emissions pathways.
Finance executives have pointed to PPAs as an efficient hedge against future carbon pricing and regulatory constraints. They also provide procurement visibility for utilities and developers seeking to finance new renewable capacity. In markets like China and India, long term corporate PPAs have become an important catalyst for clean power development due to pricing signals and off take certainty.
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Stakeholder Perspective
Diana Schillag, member of Air Liquide’s Executive Committee responsible for Sustainable Development, said the program demonstrates practical climate action that aligns with customer needs and market conditions. She said, “The ongoing deployment of our voluntary low carbon electricity sourcing program is concrete evidence of our commitment to transforming our energy mix, securing additional low carbon capacity on top of grid transition in geographies where we operate. Our goal is to maximize the impact of our actions on overall emissions reduction. It highlights the Group’s agility in using the best levers at hand to lower emissions as effectively as possible, particularly in carbon intensive countries, while providing our customers with low carbon solutions and supporting their own decarbonization efforts.”
Implications for Policy and Markets
For policymakers, the company’s strategy reinforces the role of voluntary corporate procurement alongside national transition efforts. Industrial PPAs have become a mechanism to accelerate renewable deployment and test market based climate solutions without new regulation. For utilities, the long term contracts offer financial stability at a time when electricity systems are absorbing higher renewable penetration, more variable load, and increased electrification.
At a global level, the development fits into a broader trend of industrial decarbonization centered around Scope 2 reduction, energy efficiency, and selective CCS deployment. As the Inflation Reduction Act in the United States, the EU Green Deal, and China’s provincial renewable mandates shape future investment decisions, multinational firms are moving to secure electricity with known carbon profiles rather than rely solely on future grid evolution.
C Suite and Investor Takeaways
For C suite readers, the Air Liquide case demonstrates that voluntary procurement can deliver near term emissions reduction in coal heavy markets, create customer value through lower embodied carbon products, and support capital markets seeking credible transition plans. For investors, the detail on multi year PPAs and electrification indicates a maturing climate strategy that blends operational execution with long term energy market positioning.
The closing question for global climate and finance stakeholders is how rapidly other industrial actors will adopt similar sourcing at scale. The answer will shape near term emissions trajectories in emerging markets and determine the balance between voluntary action and regulatory intervention in global power decarbonization.
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