Linde has announced new agreements to acquire two air separation units (ASUs) and expand its industrial gas supply to Tata Steel Limited at its Kalinganagar facility in Odisha, India.
The deal will see Linde taking ownership of the two ASUs currently under construction and more than doubling its on-site capacity at the steel production site. The transfer of the plants is expected to be completed by 2025.
This development marks an extension of Linde’s existing partnership with Tata Steel, where it already operates two ASUs supplying oxygen, nitrogen and argon to the iron and steel manufacturing complex.
Linde has now secured a long-term agreement with Tata Steel to supply these critical gases as the company embarks on a major capacity expansion project.
In addition to fulfilling Tata Steel’s growing gas needs, Linde’s new ASUs will cater to the wider regional merchant market to help meet rising demand for industrial gases in the Odisha region.
Moloy Banerjee, President ASEAN & South Asia at Linde, highlighted the importance of the new agreement, stating, “The new agreements to support Tata Steel’s major capacity expansion build on our existing long-term relationship and further strengthen our position as a supplier of critical industrial gases to the steel industry.”
There are also provisions in place for the supply of renewable energy to power the ASUs, contributing to the company’s target of reducing absolute greenhouse gas emissions by 2035. This use of renewable energy is part of Linde’s plans to cut its Scope 2 emissions.
Banerjee also noted that the project “meets our strict investment criteria and will deliver sustainable growth for Linde, while enhancing our network density in one of India’s most important and fast-growing industrial gas clusters.”
Growth in steel production
As steel production requires vast quantities of industrial gases, including oxygen and nitrogen for processes like blast furnace operations and steelmaking, Tata Steel’s expansion will naturally result in greater demand for these gases.
Industry sources highlight that for every tonne of steel produced, approximately 50 cubic metres of oxygen are consumed, underlining the critical role of gas supply in steel production.
Tata Steel, one of the world’s largest steel producers, has been ramping up production in recent years to meet both domestic and international demand.
The company’s Kalinganagar plant in Odisha is a key part of its expansion strategy, with plans to increase its annual production capacity from three million tonnes to eight million tonnes by 2025, according to company reports. This growth aligns with India’s increasing steel consumption, driven by infrastructure development and government initiatives like “Make in India.”
