Air Liquide Develops Its Hydrogen Business in The U.S.

PARIS -- The increasing demand for hydrogen is largely driven by the need for refiners to process heavier crudes and to comply with the new environmental regulations. In this context, Air Liquide is expanding its hydrogen capacity to serve its customers.

Air Liquide Large Industries U.S. LP announces that its new hydrogen unit in Bayport, Texas has been in production since July 28 and is fully integrated into Air Liquide's Texas Gulf Coast Pipeline system. The Bayport steam methane reformer (SMR) has a capacity of 100 million standard cubic feet per day. It is one of the main components of an expansion of Air Liquide's hydrogen system on the Gulf Coast. A newly built purification station employing Air Liquide patented technology has been added in Freeport, Texas, and a 23-mile extension to the pipeline itself has been built between Bayport and Texas City, Texas.

As announced previously, more than half the capacity of the new SMR will go toward supplying a major refinery, where Air Liquide's pipeline network will provide the hydrogen needed to produce new ultra-low sulfur diesel fuel. The new SMR will also meet the increasing hydrogen and steam needs of Air Liquide customers south of the Houston ship channel.

Air Liquide has also begun work on another world-scale SMR in California. This unit, scheduled for completion in the third quarter of 2008, will supply hydrogen needs anticipated in the San Francisco Bay industrial basin.

Pierre Dufour, Air Liquide Group Executive Vice-President and President and CEO, American Air Liquide Holdings, Inc., said: "Air Liquide's hydrogen business in the US doubled between 2000 and 2004 and has doubled again from 2004 to the present. With this new hydrogen plant on-stream and the SMR underway in California, we are committed to continue to steadily increase the supply of hydrogen to serve the needs of refiners and petrochemical customers in major industrial basins."

Air Liquide Large Industries U.S. LP is a subsidiary of American Air Liquide Holdings, Inc.

Air Liquide Group sales of hydrogen in 2005 are estimated to be around 650 million euros and are projected to reach one billion euros by 2008. The Group operates 200 hydrogen production units throughout the world (of which 30 are large units) as well as the world's longest hydrogen pipeline network (1,700 km).

Present in more than 70 countries, Air Liquide is the world leader in industrial and medical gases and related services. The Group offers innovative solutions based on constantly enhanced technologies. These solutions, which are consistent with Air Liquide's commitment to sustainable development, help to protect life and enable our customers to manufacture many indispensable everyday products. Founded in 1902, Air Liquide has nearly 36,000 employees. The Group has successfully developed a long-term relationship with its shareholders built on trust and transparency and guided by the principles of corporate governance. Since the publication of its first consolidated financial statements in 1971, Air Liquide has posted strong and steady earnings growth. Sales in 2005 totaled 10,435 million euros, with sales outside France accounting for almost 80%. Air Liquide is listed on the Paris stock exchange and is a component of the CAC 40 and Eurostoxx 50 indices (ISIN code FR 0000120073).