The Rising Influence of Rising Affluence

[DewDiligence]

APD is indeed a major producer of O2 as well as H2. For the largest customers, APD builds a dedicated plant at the customer’s refinery and sells its industrial gases on a take-or-pay basis where the customer bears 100% of the risk from price changes in the methane feedstock (in the case of H2). Thus, this APD business, which the company calls tonnage gasses, has an annuity-like contribution to profits.