Shanghai Chemical Industry Park Industrial Gases Co., Ltd (SCIPIG), a subsidiary of Air Liquide, signed a bilateral green loan for around 67 million euros with BNP Paribas as the sole lending bank.

This green loan follows the China-EU Common Ground Taxonomy, with stringent criteria on hydrogen production and an emission threshold for the definition of low-carbon hydrogen. It is as well aligned with the international Green Loan Principles 2021 and the Equator Principles (2020). It has received a Second Party Opinion from the independent expert DNV.

It is the first green loan worldwide to support low-carbon hydrogen production in alignment with the new China-EU Common Ground Taxonomy. SCIPIG will monitor the environmental benefits of this project on a regular basis and will report annually to the lender on selected indicators, including the annual avoided greenhouse gases emissions and the hydrogen annual production volume. As they will replace a third party coal-based gasification unit, the new units will avoid the emission of 350,000 tonnes of CO2 per year, which is equivalent to the electricity related emissions of 1 million Chinese households.

Air Liquide is a front runner in green financing. The Group issued a first SRI-labeled bond as early as 2012 to finance the expansion of its Home Healthcare business. In 2019, it signed a sustainability linked syndicated credit line and, in 2021, it issued a green bond, raising 500 million euros dedicated to financing and refinancing the development of several sustainable projects, in particular in hydrogen, biomethane and oxygen.

Jérôme Pelletan, Chief Financial Officer of Air Liquide Group, said, “This green loan is a recognition of Air Liquide’s ability to uphold projects abiding by the highest environmental standards. It also illustrates our historical pioneering spirit in sustainable financing as this is the first green loan to support low-carbon hydrogen production in alignment with the new China-EU Common Ground Taxonomy. In line with its ADVANCE strategic plan, the Group keeps developing reliable and competitive solutions which help its customers reduce their carbon footprints.”