Air Liquide and PAO Severstal, a steel and mining company, have signed a new long-term contract for the supply of oxygen, nitrogen, and argon in Cherepovets (Russia). Air Liquide will invest around EUR 50M in the construction of a state-of-the-art Air Separation Unit (ASU) which will improve the energy efficiency and the overall environmental footprint of the Severstal production process.
Air Liquide will design, construct and own a new ASU on the Severstal CherMK site in Cherepovets producing 2,000 tons of oxygen per day. This will bring the total production capacity of Air Liquide above 7,000 tons of oxygen per day on this site, making the Cherepovets one of the largest industrial gas production unit across the steel industry worldwide. The project will be operated by Air Liquide Severstal, a joint-venture established in 2005 between Air Liquide and Severstal.
The Air Liquide Engineering and Construction teams will bring their state-of-the-art technologies to build this large-scale ASU, which is planned to be operational by the end of 2020. The new ASU will enable improving significantly the energy efficiency and reducing CO2 emissions by 20.000 tons/year which corresponds to the yearly emissions of 7.500 cars. This performance will contribute to reaching the Climate ambitions of the Air Liquide Group of reducing its carbon intensity by 30% between 2015 and 2025.
This new signature illustrates our strategy of development in key industrial basins. This is the third ASU installed and operated by Air Liquide in Cherepovets since 2007.