Air Products and Tatung Forever Energy Sign Power Purchase Agreement for Solar Electricity in Taiwan

Rhea-AI Summary

Air Products San Fu Co. , a subsidiary of Air Products (NYSE: APD), has signed a 10-year Power Purchase Agreement (PPA) with Tatung Forever Energy for solar electricity in Taiwan. The agreement, starting in Q4 2024, will help Air Products San Fu reduce its carbon footprint and support Taiwan's industrial decarbonization efforts. The renewable energy sourced will avoid CO2 emissions equivalent to the electricity-related emissions from over 80,000 Taiwanese households during the agreement period.

This strategic partnership aligns with Air Products' commitment to addressing climate change and supporting sustainable development in Taiwan's industrial gases sector. Air Products San Fu, with over 70 years of presence in Taiwan, operates more than 60 production facilities serving diverse markets and holds leading positions in key science industry parks.

Positive

• 10-year Power Purchase Agreement for solar electricity signed, demonstrating long-term commitment to sustainability
• Reduction in carbon footprint equivalent to emissions from 80,000 Taiwanese households over the agreement period
• Strategic positioning to support customers' sustainability goals and Taiwan's industrial decarbonization efforts
• Strong market presence with over 60 production facilities serving diverse industries in Taiwan

Negative

• None.

Insights

Energy Sustainability Expert

This PPA marks a significant step in Air Products' sustainability efforts in Taiwan. By sourcing renewable energy for industrial gas production, the company is aligning with global decarbonization trends. The 10-year commitment demonstrates long-term planning and could potentially enhance Air Products' competitive position in an increasingly environmentally conscious market.

The agreement's impact on avoiding CO2 emissions equivalent to 80,000 households is substantial. This move may positively influence Air Products' ESG ratings, potentially attracting environmentally conscious investors. However, it's important to note that this represents only a portion of their energy consumption, indicating room for further sustainability improvements.

For investors, this strategic decision could translate to long-term cost stability and reduced exposure to fossil fuel price volatility, potentially enhancing the company's financial resilience in the face of stricter environmental regulations.

Industrial Sector Analyst

This PPA is a strategic move for Air Products in the competitive industrial gases sector. By transitioning to renewable energy, the company is future-proofing its operations against potential carbon pricing mechanisms and stricter environmental regulations in Taiwan.

The agreement could provide a competitive edge in attracting and retaining clients, especially in high-tech industries like semiconductors and TFT-LCD, where sustainability is increasingly important. Air Products' strong position in key science industry parks and extensive pipeline networks make this green initiative particularly impactful.

However, investors should note that the financial terms of the PPA are not disclosed. The impact on operational costs and profitability remains unclear, which is important for assessing the full implications of this move on Air Products' financial performance in the Taiwan market.

TAIPEI, Taiwan , Aug. 28, 2024 /PRNewswire/ -- Air Products (NYSE: APD), a world-leading industrial gases company, today announced Air Products San Fu Co. Ltd. has signed a 10-year Power Purchase Agreement (PPA) for solar electricity with Tatung Forever Energy, a subsidiary of Tatung Company, one of Taiwan's leading conglomerates. The strategic renewable energy agreement underscores Air Products' long-term commitment to address climate change and support the decarbonization and sustainable development of Taiwan's industrial gases sector.

Under the PPA, which begins in the fourth quarter of 2024, Air Products San Fu will source a portion of its energy consumption for industrial gases production from a reliable and renewable energy source. The renewable electricity will allow Air Products San Fu to avoid carbon dioxide (CO₂) emissions equivalent to the electricity-related emissions from more than 80,000 households in Taiwan over the duration of the agreement.

"We are excited to collaborate with Tatung Forever Energy as we take a significant step in the transition to green energy. This strategic agreement will enable us to reduce our environmental footprint and help customers in various sectors achieve their sustainability goals," said Paul Yang, president of Air Products San Fu. "As a leading industrial gases player in Taiwan, Air Products San Fu is committed to working closely with the government, customers, and suppliers to accelerate Taiwan's industrial decarbonization and support the roadmap of 'Executive Yuan'  towards an innovative industrial ecosystem for green technologies."

Huang Yun-Wei, general manager of Tatung Forever Energy, added, "With international awareness of carbon reduction on the rise, the demand for renewable energy is growing rapidly. We are very glad to cooperate with enterprises like Air Products San Fu on solar electricity and look forward to our further collaboration to achieve carbon neutrality through improved power stability and utilization efficiency."

Air Products has been serving the Taiwan market through Air Products San Fu for over 70 years and established leading positions in key science industry parks with strong pipeline networks to supply its semiconductor and TFT-LCD customers. The company has more than 60 production facilities serving diverse markets, including metal fabrication, glass, electronics, semiconductor, flat panel display, and petrochemicals. Air Products San Fu is the first industrial gases company in Taiwan awarded ISO9002, ISO14000, and ISO17034 certifications. 

About Air Products

Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products' base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and provides turbomachinery, membrane systems and cryogenic containers globally.

The Company had fiscal 2023 sales of $12.6 billion from operations in approximately 50 countries and has a current market capitalization of approximately $60 billion. Approximately 23,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, X, Facebook or Instagram.

Cautionary Note Regarding Forward-Looking Statements

This release contains "forward-looking  statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.

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SOURCE Air Products

FAQ

What is the duration of the Power Purchase Agreement between Air Products San Fu and Tatung Forever Energy?

The Power Purchase Agreement (PPA) between Air Products San Fu and Tatung Forever Energy is for a duration of 10 years, starting in the fourth quarter of 2024.

How much CO2 emissions will Air Products (APD) avoid through this solar electricity agreement?

Air Products San Fu will avoid carbon dioxide emissions equivalent to the electricity-related emissions from more than 80,000 households in Taiwan over the duration of the 10-year agreement.

What markets does Air Products San Fu serve in Taiwan?

Air Products San Fu serves diverse markets in Taiwan, including metal fabrication, glass, electronics, semiconductor, flat panel display, and petrochemicals, with more than 60 production facilities.

When did Air Products (APD) start operations in Taiwan?

Air Products has been serving the Taiwan market through Air Products San Fu for over 70 years, establishing leading positions in key science industry parks.