In a significant move to advance clean energy, Linde plc LIN announced an investment exceeding $2 billion to develop a state-of-the-art clean hydrogen production facility in Alberta, Canada.
Scheduled for completion in 2028, this facility is set to become the largest of its kind in Canada and will rank among the largest globally.
The new complex, spearheaded by industrial gas firm Linde, will utilize autothermal reforming technology, along with its proprietary HISORP carbon capture system, to produce clean hydrogen. Additionally, it will capture and recover hydrogen from off-gases generated by Dow Inc.’s DOW ethylene cracker.
The latest initiative is part of a broader partnership with Dow, wherein the facility will support Dow’s groundbreaking Path2Zero production complex — a project aiming to achieve net-zero emissions from its integrated ethylene cracker and derivatives site.
In its initial phase, the facility will provide clean hydrogen, nitrogen and other essential services to Dow’s innovative ethylene cracker project. Beyond this, the plant will cater to a range of industrial customers seeking to reduce their carbon footprints, with an expected annual carbon dioxide sequestration capacity of more than 2 million metric tons.
The venture marks Linde’s most substantial investment to date and its second major clean hydrogen project following a recent $1.8-billion initiative in the U.S. Gulf Coast. The Dow Path2Zero project, valued at $6.5 billion, represents Dow’s commitment to expanding its polyethylene capacity by 2 million metric tons annually and setting a standard in net-zero emissions in the chemical sector.
Linde’s forthcoming Alberta facility underscores the growing momentum in the clean hydrogen sector and highlights the firm’s strategic role in the global push toward sustainable industrial practices.
Price Performance
LIN shares have outperformed the industry in the past six months, wherein the stock has gained 5.8% against the industry’s 20.9% decline.
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Zacks Rank & Key Picks
Linde carries a Zacks Rank #3 (Hold).
Some better-ranked players in the basic materials space are Cabot Corporation CBT and CSW Industrials, Inc. CSWI, currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cabot is a leading global specialty chemicals and performance materials company. The company offers a broad range of products and solutions to customers in every corner of the planet, catering to major industries, such as transportation, infrastructure, environment and consumer.
The Zacks Consensus Estimate for CBT’s 2024 EPS is pegged at $7.07. The company has a Zacks Style Score of A for Value and Growth, and B for Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
CSW Industrials manufactures and sells industrial products, coatings, sealants, adhesives and specialty chemicals. The company offers HVAC mechanical, building and fire/smoke prevention, and lubricating and filtration equipment for commercial construction, HVAC and rail companies.
The Zacks Consensus Estimate for CSWI’s 2024 EPS is pegged at $8.45. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
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Dow Inc. (DOW) : Free Stock Analysis Report
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