Air Liquide to build $12 M oxygen pipeline in Ontario
- January 7, 2015
The new pipeline represents a total investment in excess of $12 million, jointly funded by Air Liquide and the Ontario Power Authority's saveONenergy Program. The new pipeline will reduce electrical energy consumption at Air Liquide's Hamilton operations by almost 29,000MWh/year or 2 million dollars annually. It will allow Air Liquide to more efficiently supply ArcelorMittal-Dofasco with oxygen, which is essential in the production of iron and steel. Access to lower cost oxygen will provide an opportunity for increased productivity of ArcelorMittal Dofasco's blast furnaces.
A large part of purchased goods and services required to build the pipeline will be sourced from local Hamilton area companies. Construction will begin as soon as final approvals are received from the City of Hamilton and commissioning of the pipeline should begin in March 2015.
Adam Peters, president and CEO of Air Liquide Canada, says "the support of the Ontario Power Authority's saveONenergy Program allows Air Liquide to build a new oxygen pipeline to more efficiently supply ArcelorMittal Dofasco. In doing so, we are expanding a longstanding business relationship with Canada's largest flat rolled steel producer. The project attests in the ability of Air Liquide to reliably and cost-effectively supply industrial gases which meet high safety and quality standards. It reaffirms our strong determination to keep investing and growing in Canada."
Brian Benko, ArcelorMittal Dofasco's VP, Procurement and Information Technology says the company is "pleased that Air Liquide's project has been selected for this critical grant. Our supply chain, those organizations that play a role in our success including our customers and supply partners, are critical to our business. To ensure a healthy supply chain, we focus on continuous improvement and look for it in everything we do and in everyone we work with. Air Liquide's oxygen pipeline project brings increased reliability and efficiency to our partnership, a win for both of our organizations and for Ontario."
Max Cananzi, president and CEO of Horizon Utilities, a company that counts Air Liquide and ArcelorMittal Dofasco as two of its largest partners, says "customers are recognizing the benefits of energy efficient solutions by making substantial long-term investments to better manage their electricity costs while showing a commitment to being environmentally conscious."