Responsibility:
Energy Efficiency

As part of our commitment to environmental stewardship, we recognize stakeholders' concerns regarding the impact of greenhouse gas emissions—generated by energy and fuel consumption—on the global climate. We are working to become a more energy-efficient company and our focus is on the two largest sources of energy consumption: our 16 air separation units and our more than 5,200 trucks that deliver our products to customers.

Electric Power Usage at Our Air Separation Units

Airgas has a growing number of air separation units (ASUs) where we separate atmospheric air into its primary elements—nitrogen, oxygen and argon—for transport and sale to customers in liquid form and to our fill plants for repackaging. It's an energy-intensive process; electricity accounts for nearly 65 percent of total production costs at the ASUs and represents a significant portion of Airgas' total electricity consumption.

For these reasons, ASUs are a natural focus of our sustainability efforts. During the last several years, we decommissioned our two most inefficient plants, and as we build new ASUs—three are currently under construction—we design in high-efficiency motors and advanced control systems to reduce energy consumption. The high-efficiency motors provide the same amount of horsepower but consume less electricity. The computer control systems allow us to optimize efficiency by maximizing product recovery and minimizing energy consumption. This equipment is also part of all upgrades to our legacy plants.

Diesel Fuel Usage in Our Truck Fleets

Airgas operates one of the largest private truck fleets in the U.S., so it makes sense for both our business and our sustainability efforts to increase the fuel economy of our distribution vehicles. In 2014, our fleet of more than 5,200 vehicles covered more than 130 million miles, from rural roads to crowded city streets.

To date, most of our fuel efficiency efforts have focused on our bulk fleet because that is where we can see the most impactful and immediate improvements. All bulk trucks are now equipped with three-minute idle-time shut down devices, plus lightweight aluminum components and wide-based tires that enable better fuel mileage.

In early 2015, we installed electronic on-board computers in 31 percent of our bulk fleet. They connect into the engine computers and allow us to track—and reduce—out-of-route miles, idling time and other fuel-wasting actions. By the end of 2015, the majority of bulk trucks in our fleet will feature these computers. We also plan to install similar smart devices in our cylinder fleet, which will enhance the improvements we are already seeing from driver training and further increase fuel efficiency on routes that include multiple short trips and constant stop-and-go driving.