Air Products Publishes 2024 Sustainability Report - "Generating a Cleaner Future"

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Air Products (NYSE: APD) has published its 2024 Sustainability Report, titled 'Generating a Cleaner Future'. The report highlights the company's progress on sustainability goals and introduces new targets. Key points include:

1. Updated carbon intensity goals with a new 2023 baseline.
2. Commitment to quadruple renewable energy use by 2030.
3. Plans to develop water management strategies for high-priority facilities by 2026.
4. Showcases world-scale clean hydrogen projects, including the NEOM Green Hydrogen Company in Saudi Arabia and complexes in Louisiana and Edmonton.
5. These projects aim to avoid 250-500 million metric tonnes of CO2e over their lifetime.

The report also mentions several recognitions, including an 'A' rating from MSCI for environmental, social, and governance performance.

Latest Report Discusses Company's Sustainability Performance and Progress, Setting of Additional Goals, and Efforts to Accelerate the Clean Energy Transition 

LEHIGH VALLEY, Pa., Aug. 8, 2024 /PRNewswire/ -- Air Products (NYSE: APD) published today its 2024 Sustainability Report – "Generating a Cleaner Future" – detailing progress against its existing sustainability goals and announcing new ones; highlighting its clean hydrogen megaprojects around the world; and showcasing how its industrial gases and applications expertise enable customers to improve productivity and reduce environmental impact.

The Company's latest Sustainability Report also provides stakeholders with economic, environmental and social performance data, in accordance with Global Reporting Initiative (GRI) standards "Core" option.

"During this past year, Air Products has strengthened our previously announced environmental goals and with this report, we are also launching new goals for renewable energy and water management. We have worked collaboratively with our customers across dozens of industries while advancing our world-scale, first-mover clean hydrogen projects to help decarbonize industry and heavy-duty transportation," said Seifi Ghasemi, Air Products' Chairman, President and CEO. "The progress we have made in these efforts is due to tremendous efforts by our people, working with our customers and within in our company to fulfill our higher purpose and generate a cleaner future for our world."  

New and Updated Sustainability Goals

• Air Products updated the baseline year for its "Third by '30" carbon intensity goals for Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions from 2015 to 2023 while keeping the same target date of 2030, making the goals more ambitious.
  
  
• Air Products has committed to quadruple the amount of renewable energy used to make its products by 2030 compared to a 2023 baseline. This goal exceeds the pledge made by world leaders at the United Nations Climate Change Conference COP28 to "triple up" renewables by 2030.
  
  
• Air Products has committed to develop water management plans by 2026 for high-priority facilities in water-stressed areas with implementation by 2030.

World-Scale Clean Hydrogen Projects

The Sustainability Report also highlights several of the Company's world-scale clean hydrogen projects to support the energy transition, including:

• The world's largest green hydrogen plant: The NEOM Green Hydrogen Company, a joint venture of ACWA Power, Air Products and NEOM, is executing a world-scale green hydrogen-based ammonia production facility powered by renewable energy in the Kingdom of Saudi Arabia. Once onstream, the facility will supply 600 tonnes per day of carbon-free hydrogen for industrial and heavy-duty transportation sectors.
  
  
• The Louisiana clean energy complex will produce over 750 million standard cubic feet per day of low-carbon hydrogen, with a portion supplied to customers along Air Products' U.S. Gulf Coast hydrogen pipeline network and the remainder used to produce blue ammonia for global markets. Once onstream, over five million tonnes of carbon dioxide (CO₂) per year will be captured, compressed, and transported by pipeline for permanent sequestration.
  
  
• The net-zero hydrogen energy complex will make Edmonton, Alberta, Canada the center of western Canada's hydrogen economy. This transformative complex will produce 165 million standard cubic feet per day of low-carbon hydrogen and deploy advanced technology that enables carbon capture for permanent sequestration. In addition, to avoid the indirect emissions associated with using electrical power from the grid, the complex includes a 100 percent hydrogen-fueled power generation unit.
  
  
• Air Products continues to work with key partners to progress plans for renewable hydrogen facilities in the United Kingdom (UK), the Netherlands, and Germany.

The clean hydrogen from Air Products' megaprojects will help the world avoid 250 to 500 million metric tonnes of CO₂e over their lifetime, depending on the mix of hydrogen applications.

Recognitions

The Sustainability Report also cites several important recognitions received by the Company during the prior year, including Air Products being named as an Energy Transition Changemaker at COP28 for its net-zero hydrogen energy complex in Edmonton, Alberta, Canada and the NEOM green hydrogen project. Air Products was awarded an 'A' rating on MSCI's environmental, social and governance ratings. The 'A' rating by MSCI was based on Air Products' improvements in its carbon management strategy, including carbon capture efforts, its announced goal to reach net-zero carbon emissions from operations by 2050, and other sustainability initiatives. Air Products was also again included on Barron's 100 Most Sustainable Companies list and rated as one of America's Best Employers for Diversity for 2023 by Forbes magazine.

Visit Air Products' Sustainability website to view the complete 2024 Sustainability Report.

About Air Products

Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products' base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and provides turbomachinery, membrane systems and cryogenic containers globally.

The Company had fiscal 2023 sales of $12.6 billion from operations in approximately 50 countries and has a current market capitalization of approximately $60 billion. Approximately 23,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, X, Facebook or Instagram.

Cautionary Note Regarding Forward-Looking Statements

This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.

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SOURCE Air Products

FAQ

What are Air Products' new sustainability goals for 2024?

Air Products (APD) has updated its carbon intensity goals with a 2023 baseline, committed to quadruple renewable energy use by 2030, and plans to develop water management strategies for high-priority facilities by 2026.

How much clean hydrogen will Air Products' Louisiana complex produce?

Air Products' (APD) Louisiana clean energy complex will produce over 750 million standard cubic feet per day of low-carbon hydrogen when operational.

What is the expected CO2 reduction from Air Products' clean hydrogen projects?

Air Products (APD) estimates that its clean hydrogen megaprojects will help the world avoid 250 to 500 million metric tonnes of CO2e over their lifetime, depending on the mix of hydrogen applications.

Where is Air Products developing its largest green hydrogen plant?

Air Products (APD) is developing the world's largest green hydrogen plant through the NEOM Green Hydrogen Company, a joint venture in the Kingdom of Saudi Arabia.

What recognition did Air Products receive for its sustainability efforts in 2024?

In 2024, Air Products (APD) received an 'A' rating on MSCI's environmental, social and governance ratings, was named an Energy Transition Changemaker at COP28, and was included in Barron's 100 Most Sustainable Companies list.