L'Air Liquide S.A. (AIQUY Quick QuoteAIQUY - Free Report) and Dunkerque LNG recently received the European Commission's (“EU”) support for the D'Artagnan project. This CO2 transportation and export infrastructure is part of the "Cap Decarbonation" effort, which seeks to cut CO2 emissions by 1.5 million tons per year in Dunkirk's industrial basin and nearby areas. 

The D'Artagnan project entails the set-up of an Air Liquide pipeline for carrying CO2 from capture sites, as well as a terminal in the port of Dunkirk for liquefying and loading CO2 onto ships. 

The project is the central link of the "Cap Decarbonation" initiative, a complete value chain. It consists of complementary projects that include CO2 capture at Eqiom, a cement plant in Lumbres, North France and Lhoist, a lime production facility in Rety, North France. These projects are made possible by the use of Air Liquide's proprietary Cryocap technology, which is funded by the Innovation Fund.

The projects also include CO2 transportation via pipelines and a CO2 exportation terminal. As part of the D'Artagnan project, Air Liquide would build and operate pipelines to carry the captured CO2 to a new CO2 terminal in the West Port of Dunkirk, near the LNG terminal.

D'Artagnan would benefit from a grant of more than 160 million euros as part of the CEF-E (Connecting Europe Facility for Energy)  funding initiative and would represent an estimated investment of more than 400 million euros. The project's investment decision will be specifically correlated with the signing of contracts for CO2 management and capture as a service.

This new terminal, which would be constructed and operated by Air Liquide and Dunkerque LNG, would receive and liquefy CO2 before shipping it to permanent storage facilities in the North Sea. As a result, Air Liquide and Dunkerque LNG shareholders formed a joint venture to benefit from Air Liquide's CO2 management and liquefaction knowledge, as well as Dunkerque LNG's terminal operation experience.

D'Artagnan, the first CO2 infrastructure project in France to get European Union funding, is an important step toward implementing the capture and sequestration technologies required to cut CO2 emissions in France and Europe.

Shares of Air Liquide have gained 11.4% over the past year against a 4.8% decline of its industry.

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Zacks Rank & Key Picks

Air Liquide currently carries a Zacks Rank #4 (Sell).

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