What's happened
Major industrial gas companies control a significant share of the global market and consume as much electricity as small European countries. Their energy-intensive processes contribute heavily to carbon emissions, with limited progress on renewable energy adoption, raising concerns about their environmental impact.
What's behind the headline?
The industrial gas industry is a hidden giant in global energy consumption. Despite its relatively obscure profile, it accounts for a substantial share of electricity use, comparable to some European nations. Companies like Linde, Air Liquide, and Air Products dominate a $120 billion market, yet their efforts to reduce emissions are limited.
Linde's pledge to reach net-zero by 2050 is undermined by its focus on emissions intensity rather than absolute reductions, meaning total emissions could still rise. The industry’s reliance on air-separation units and energy-intensive processes makes decarbonization challenging.
The industry’s limited adoption of renewable energy sources—only about 14% of electricity is reliably renewable—further hampers progress. Experts criticize the use of renewable energy credits and environmental certificates as insufficient substitutes for actual emissions reductions.
This sector’s environmental impact is often overlooked because its customers are large chemical, steel, and oil companies, not consumers. Its emissions are comparable to those of oil majors when considering direct and indirect impacts. The story underscores the need for stricter regulation and innovation to curb this sector’s carbon footprint, which will likely intensify as demand for green tech and energy-intensive gases grows.
What the papers say
The Japan Times highlights the scale of energy consumption by industrial gas companies like Linde, Air Liquide, and Air Products, noting their electricity use exceeds that of major tech firms and oil giants. Bloomberg emphasizes that these companies consume as much electricity as small to medium European countries, underscoring the sector's energy intensity. The articles collectively reveal that despite their critical role in modern life, these companies remain largely under the radar, with limited progress on renewable energy adoption. Critics argue that current efforts, such as renewable energy credits, do not significantly reduce emissions, and call for more aggressive decarbonization strategies. The industry’s environmental impact is significant, yet it remains a relatively obscure part of the global energy conversation, raising questions about future regulation and technological innovation.
How we got here
The industrial gas industry supplies essential gases like nitrogen, oxygen, and helium used in everyday products and medical treatments. Its production relies on air-separation units and energy-intensive processes, making it a major energy consumer. Few are aware of this sector's environmental footprint until recent scrutiny highlighted its scale.
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