Air Liquide (AIQUY), Statkraft Team Up on Poland Decarbonization
Air Liquide AIQUY entered into a long-term Virtual Power Purchase Agreement (VPPA) with Statkraft, Europe's largest producer of renewable energy. This agreement marks a significant milestone for Air Liquide as it seeks innovative financial avenues to advance its decarbonization and sustainability goals.
By engaging in Power Purchase Agreements to source renewable energies, Air Liquide aims to achieve a 33% reduction of scope 1 & 2 absolute CO2 emissions by 2035 and ultimately attain carbon neutrality by 2050, in alignment with its ADVANCE strategic plan objectives.
The contract provides for the issue of renewable energy certificates from Polish wind farms, which are tied to newly installed renewable production capacity. This initiative is projected to lower Air Liquide's CO2 emissions by 38,000 tons per year and assist Polish customers in decarbonizing their operations through the use of industrial gases with lower carbon footprints. The agreement supports Poland's objective of achieving a minimum 23% share of renewable energies in final energy consumption by 2030.
Air Liquide Price and Consensus
Air Liquide price-consensus-chart | Air Liquide Quote
A Virtual PPA, also referred to as a Financial PPA, represents an innovative transaction where a fixed price is exchanged for a variable price and renewable energy certificates. Such agreements benefit both renewable electricity producers and industrial consumers in the long term, providing income security for sellers and cost stability for buyers.
Air Liquide stressed the importance of this Financial PPA, considering it a pioneering venture for the company. It has emphasized the dedication and ingenuity across all its business and finance teams in striving to achieve climate objectives. Air Liquide suggested the possibility of engaging in more contracts of a similar nature in the future.
At the core of Air Liquide's strategy lies the initiative to take action today while preparing for the future. Through its ADVANCE strategic plan for 2025, the company aims for comprehensive global performance, integrating financial and extra-financial dimensions. With a focus on new markets, resilience, innovation, and technological expertise, Air Liquide develops solutions that contribute to climate and energy transition, particularly emphasizing hydrogen while also advancing in healthcare, digital and high-tech domains.
Shares of Air Liquide have gained 15.1% in the past year compared with a 19.4% fall of the industry.
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Zacks Rank & Other Key Picks
Air Liquide currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, sporting a Zacks Rank #1 (Strong Buy), Eldorado Gold Corporation EGO and Hawkins, Inc. HWKN, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Eldoradohas a projected earnings growth rate of 1,040% for the current year. The Zacks Consensus Estimate for EGO’s current-year earnings has been revised 10% upward in the past 60 days. EGO topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 496%. The company’s shares have rallied 19.1% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied 58.3% in the past year.
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