Air Liquide will invest 25 million euros to fully upgrade the large-scale air separation unit (ASU) in Yulin, Shaanxi, from a \"steam-driven\" system to a \"electrically driven\" one”

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French company Air Liquide announced today that it will invest an additional €25 million to completely upgrade the large-scale air separation unit (ASU) located in Yulin, Shaanxi, and which has been serving Yanjiang Petroleum for over a decade, from a steam-driven system to an electric-driven one. This is the third and largest \"decarbonization benchmark\" project implemented by Air Liquide in China, following the successful electrification of two air separation units in Tianjin in 2023; it is directly aligned with China’s commitments to reach peak carbon emissions by 2030 and achieve carbon neutrality by 2060. This upgrade is a key clause in the renewal of the long-term gas supply contract between Air Liquide and a subsidiary of Yanchang Petroleum. During the renovation, Air Liquide adopted a \"modular switching\" approach to ensure zero disruption in the supply of industrial gases such as oxygen, nitrogen, and argon to its customers ； Upon completion of the upgrade, the gas supply contract between the two parties will be extended for an additional period, securing low-carbon gas demand for the next fifteen years. Production capacity: Daily oxygen production has increased by 10%, rising from 5,800 tons to 6,400 tons, which is sufficient to meet the increased gas demand of a refining and chemical complex with a capacity of 10 million tons. Carbon reduction: Thanks to the green electricity procurement agreements in northern Shaanxi, the facility consumes around 600 million kWh of electricity per year, of which 80% comes from solar and wind power. This results in a reduction of 550,000 tons of carbon dioxide emissions each year – equivalent to 1.2 million gasoline vehicles being taken off the road for a year, or planting 30 million trees. Efficiency: Overall energy efficiency improves by 8%, with the energy consumption per unit of gas dropping to 0.35 kWh/Nm³ O₂, placing it among the top 10% of air separation units in terms of energy efficiency worldwide. Water consumption: By eliminating the existing steam turbine condensing system, the amount of circulating cooling water used is reduced by 30%, resulting in annual water savings of over 500,000 tons. Air Liquide adopts an integrated solution of \"motor + variable-speed compressor + high-pressure frequency conversion\", replacing the original two 40 MW steam turbines with two 45 MW synchronous motors. The load range is expanded from 60%–100% to 30%–110%, enabling deep peak shaving ； The AI predictive maintenance system was launched simultaneously, extending the downtime for maintenance from 12 months to 18 months and raising the availability rate to 99.7%. The newly developed integrated projects of \"photovoltaic power – energy storage – air separation\" include: a 500 MW centralized photovoltaic plant and a 200 MW wind power plant in Jingbian, Yulin, which generate 1.1 billion kWh of green electricity per year ； 50 MW/200 MWh lithium iron phosphate energy storage system to smooth the power output curve and ensure 24/7 continuous operation of the air separation unit ； The 25-year \"bilateral negotiation + green certificate\" contract signed with the Shaanxi Power Trading Center fixes the electricity price at 0.28 yuan per kilowatt-hour (including taxes), resulting in cost savings of approximately 120 million euros over the entire life cycle. Payback period: 6.5 years; internal rate of return (IRR): 12%, which is higher than the average level for Air Liquide Group ； Local tax revenues: During the renovation period, the output value of construction and installation will increase by 300 million yuan; after operations commence, the annual increase in value-added tax and income tax combined will be approximately 30 million yuan ； Employment: 600 new jobs will be created during the construction phase, and 80 additional stable jobs will be created during the operation phase; this will also generate over 500 indirect jobs in areas such as green energy maintenance and transportation in the surrounding region.