Air Liquide announced Friday that it will invest approximately EUR100 million in the world-scale unit, which will be capable of generating 3,800 metric tons of oxygen per day. Air Liquide already operates two other units at the steelmaker’s Zhangjiagang City facility, and with the addition of the third, the plant will have access to more than 8,000 metric tons of daily oxygen capacity.   

Air Liquide also said the new unit will be designed to use low-carbon energy.

“Replacing old assets installed on the customer site and using an incremental proportion of low-carbon energy, this new air separation unit will contribute to a lower carbon footprint for this flagship site, in line with Air Liquide’s journey towards carbon neutrality,” the company said. 

The industrial gas supplier is building the unit as part of a 20-year industrial gas supply agreement with the steelmaker. It will become Air Liquide’s largest liquid oxygen and nitrogen source in China as well as a key source of krypton and xenon, gases that will be produced for the electronics industry.

“This new contract further enhances Air Liquide and Shagang Group’s long-term partnership which was established in 2007,” said François Abrial, an Air Liquide executive committee member who supervises Asia Pacific operations.