Air Liquide has talked about its priorities in different regions around the world.
In its latest earnings call, its leadership said the focus was on investments in the Americas, as well as reinforcing the company’s position in Europe with energy projects and expanding in Asia’s electronics sector.
Macroeconomic conditions and public policy are substantially shaping their approach across the America, Europe and Asia.
US: Clean energy projects advancing, but investment decisions delayed
The US is Air Liquide’s primary investment focus, with more than half of total opportunities concentrated in the region.
The company secured major contracts in 2024, including its largest-ever project with ExxonMobil for low-carbon hydrogen on the US Gulf Coast, as well as deals in electronics and battery materials.
At the same time, final investment decisions (FIDs) on many clean energy projects in the US will likely be delayed until later this year. The policy of the new Trump administration first needs to be confirmed.
“When I talk to our customers and I look at where we’re working and where we’re developing projects, the [pipeline is good,” said Adam Peters, CEO of Air Liquide North America. “But … investment decisions will largely be delayed until the second half of this year… until we have clarity from the administration around priorities.”
One factor is the US government’s stance on tax credits such as 45V for clean hydrogen. While Air Liquide welcomed the regulatory clarity provided in January, the new administration has now put the whole Inflation Reduction Act legislation under review.
Read more: Air Liquide reports €500m efficiencies in 2024
Europe: Leading the energy transition, but policy uncertainty slows FIDs
Despite ongoing challenges in Europe’s industrial sector, Air Liquide continues to see strong demand for decarbonisation solutions in sectors like refining and bio-refining. The company has announced seven low-carbon hydrogen projects in the region, four of which are either operational or under construction.
But executives said that final investment decisions (FIDs) on some projects are taking longer than expected due to regulatory uncertainty and difficulties making it harder to settle on the business case.
“There has been a lot of unrealistic hope, I would say, even maybe hype on hydrogen,” said Jackow. “We welcome a much more realistic time, which confirms our strategy where low-carbon hydrogen plays a key role in decarbonising selected industries.”
Jackow also addressed concerns over Europe’s wider industrial decline, with the closure of steel and chemical plants raising questions about long-term demand. While acknowledging these shifts, he stressed that Air Liquide’s diversified asset network and customer base helped to insulate the company from certain trends.
“Part of the industry in Europe will disappear, but… we also see new opportunities,” he said.
Asia: Electronics and industrial gases driving growth
Asia remains a key growth market for Air Liquide, particularly in electronics and industrial gases. The company has signed new contracts with Panasonic in China and Mitsubishi Materials in Japan, while also expanding in semiconductor materials and industrial gas supply.
“In Asia, we are leveraging our global number one position [in] electronics, developing our business and investment there,” said Jackow.
However, the company flagged pricing weakness in China’s helium market.
Policy shifts could unlock future growth
Air Liquide said it was optimistic about growth across all regions but stressed that regulatory developments would be critical in shaping its investment strategy.
In the US, companies are waiting for clearer guidance from the government, while in Europe, discussions are ongoing around potential subsidies for green hydrogen, including up to 60% of capital spending on projects.
