Air Products & Chemicals Inc. (APD) and Nippon Steel & Sumikin Pipeline & Engineering Co. Ltd. (“NSPE”) have signed a deal to jointly work on Japan’s developing hydrogen fueling infrastructure market. The agreement also involves a goal to finalize a long-term marketing and supply relationship deal between the U.S. and Japan-based companies.
The agreement is a stepping stone for both the companies’ entrance into Japan’s hydrogen fueling market. Japan is making efforts to develop a hydrogen fueling infrastructure. The Japanese government is planning to install 100 hydrogen fueling stations by 2015 and 1,000 by 2025, and plans to distribute the Fuel Cell Vehicles (:FCV).
NSPE’s technologies and experience in the natural gas and LNG sector, and Air Products’ unique advanced hydrogen fueling technology will enable Japan to significantly contribute to fulfilling this target.
Air Products will work in Japan through its established fully-owned subsidiary, Air Products Japan, on hydrogen fueling opportunities.
As part of the agreement which is yet to be formalized, Air Products will supply SmartFuel hydrogen fueling station technology and the fueling protocol license, infrastructure engineering and design, while NSPE will provide engineering, construction, and adapt the technology for the Japanese market.
Through the partnership, Air Products will benefit from a diverse customer base, sustained pricing power and cost-reduction measures.
Air Products is a Zacks Rank #3 (Hold) stock.
Other companies in the chemical space worth considering include Methanex Corp. (MEOH), Northern Technologies International Corp. (NTIC) and Akzo Nobel NV (AKZOY). While Methanex and Northern Technologies sport a Zacks Rank #1 (Strong Buy), Akzo Nobel holds a Zacks Rank #2 (Buy).