Equinor (EQNR), Linde Join Forces for H2M Eemshaven Project
Equinor ASA EQNR and Linde plc LIN officially entered into an agreement for the development of the H2M Eemshaven low-carbon hydrogen project in the Netherlands.
Equinor, leveraging its expertise in energy marketing and carbon capture and storage (“CCS”), will secure access to carbon transport and storage capacity. The company aims to offer low-carbon hydrogen to the market. Meanwhile, Linde will take charge of constructing, co-owning, and operating the hydrogen production and carbon capture and transfer facility.
The primary objective of the project is to build a facility in the Eemshaven industrial area, which will reform natural gas from the Norwegian continental shelf into low-carbon hydrogen. The process will include CCS, with more than 95 percent of the captured CO2 safely stored permanently under the seabed offshore Norway. Production is anticipated to commence in late 2028, and the hydrogen plant will be linked to onshore hydrogen pipelines planned in both the Netherlands and Germany.
The H2M Eemshaven project is expected to play a substantial role in achieving Equinor's climate objectives. It aims to fulfill 2.3% of Europe's current demand for grey hydrogen and 0.24% of the estimated market for clean hydrogen in Europe by 2050. Boasting an impressive production capacity of 1 GW (equivalent to 235,000 tons), the project represents a milestone in the pursuit of sustainable and clean energy solutions across Europe.
Grete Tveit, senior vice president for Low Carbon Solutions at Equinor, emphasized the strategic importance of the H2M Eemshaven project. She noted that the project aligns with Equinor's strategy to establish hydrogen production in three to five major industrial clusters in Europe by 2035. Tveit pointed out that Linde's proficiency in the secure development, execution, and operation of hydrogen and carbon capture plants complements Equinor's expertise.
Stefano Innocenzi, president Region Europe West at Linde, stressed their collective dedication to promoting a low-carbon economy. He expressed eagerness for collaboration with Equinor, aiming to contribute Linde's technology and expertise to the development of this flagship project, as the shift toward a low-carbon economy gains momentum.
Zacks Rank & Key Picks
Equinor currently carries a Zack Rank #3 (Hold).
A couple of better-ranked stocks in the energy sector are Sunoco LP SUN and The Williams Companies, Inc. WMB. While Sunoco sports a Zacks Rank #1 (Strong Buy), Williams Companies carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape, with its $4.5-billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
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