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Air Products to Build Liquid Hydrogen Facility in California

Zacks Equity Research

Air Products and Chemicals, Inc. APD plans to build a second liquid hydrogen production facility in California. The facility will help meet rising product demand from customers including the growing fleet of hydrogen fuel cell vehicles (FCV) in the state. The facility is scheduled to come onstream in the first quarter of 2021.

Liquified hydrogen is delivered via trailers to customers in various industries that include material handling, metals, chemical and petrochemical, electronics, utilities, float glass and edible fats and oils as well as hydrogen-powered FCV.

In September 2018, the company announced plans to construct a liquid hydrogen plant at La Porte, TX facility. The plant will draw hydrogen from Air Products' Gulf Coast hydrogen pipeline network and the project is slated to be onstream in 2021. The company’s existing liquid hydrogen production assets are operational in New Orleans, LA, and Sacramento, CA, in the U.S.; Rotterdam in The Netherlands and Sarnia, Ontario in Canada.

Recently, Air Products made investments to increase reliability in hydrogen supply chain. The company has also increased the number of dual-phase trailers, capable of transporting and off-loading hydrogen to a fueling station, transfill station or customer supply tank. Moreover, Air Products looks to add further renewable hydrogen capacity from multiple sources for increased FCV demand in California. Air Products is committed to meet customers’ product needs.

Air Products has been involved in more than 250 hydrogen fueling projects in the United States and 20 other countries. The company has more than six decades of experience in hydrogen and an extensive patent portfolio in hydrogen dispensing technology.

Shares of Air Products have gained around 1.3% in the past six months against the industry’s decline of 17.8%.

Air Products projects adjusted earnings per share (EPS) of $8.05-$8.30 for fiscal 2019, reflecting a 10% year-over-year increase at the midpoint. Moreover, it expects adjusted EPS of $1.85-$1.90 for first-quarter fiscal 2019, reflecting a rise of 5% at the midpoint.
Air Products has the capacity to deploy at least $14 billion in high-return investments in the next four years, which will boost shareholders’ value. Acquisitions and new business deals are also expected to drive results in the near term.

Air Products and Chemicals, Inc. Price and Consensus


Air Products and Chemicals, Inc. Price and Consensus | Air Products and Chemicals, Inc. Quote


Zacks Rank & Other Stocks to Consider

Air Products currently carries a Zacks Rank #2 (Buy).

Few other top-ranked stocks in the basic materials space are Ingevity Corporation NGVT, CF Industries Holdings, Inc. CF and Cameco Corporation CCJ.

Ingevity has an expected earnings growth rate of 21.5% for 2019 and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 13.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

CF Industries has an expected earnings growth rate of 70.5% for 2019 and a Zacks Rank #2. The stock has gained 3.8% in a year.

Cameco has an expected earnings growth rate of 20% for 2019 and a Zacks Rank of 2. Its shares have gained 25.1% in a year’s time.

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