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Linde (LIN) to Build Electrolyzer to Boost Hydrogen Production

Linde plc LIN plans to develop a 35-megawatt (MW) Proton Exchange Membrane electrolyzer to produce green hydrogen in New York.

The facility will be the world’s largest electrolyzer to be installed by Linde. It is likely to increase the company’s green liquid hydrogen production capacity in the United States more than twice.

Linde is currently one of the leading hydrogen producers globally. The latest project will allow it to develop, own and operate the electrolyzer, and use hydroelectric power to produce green liquid hydrogen. The facility is expected to commence operations in 2025.

Linde will utilize its existing liquefier and distribution infrastructure to supply customers. The latest project is the first of several electrolyzers the company plans to develop in the United States to address the green liquid hydrogen demand across the country.

The facility will produce green hydrogen fuel by electrolysis, wherein electric current is used to convert water into oxygen and hydrogen. Per the U.S. Department of Energy, the fuel can be used in cars, houses and portable power, among other applications.

As a low-carbon energy source, hydrogen fuel cells are popular alternatives among climate supporters. This is because these work through a chemical reaction between hydrogen and oxygen in the air to generate clean electricity, with water and heat as byproducts.

The additional capacity Linde creates will increase product availability at times of growing demand across different sectors, including electronics and manufacturing. The project aims to support the rising demand and drive to contribute to the green hydrogen market.

Price Performance

Shares of Linde have underperformed the industry in the past three months. The stock has declined 0.4% against the industry’s 5.2% growth.


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Zacks Investment Research

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Zacks Ranks & Stocks to Consider

Linde currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the basic materials space are Albemarle Corporation ALB, currently sporting a Zacks Rank #1 (Strong Buy), and Innospec Inc. IOSP and Koppers Holdings Inc. KOP, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Albemarle is a premier specialty chemical company with leading positions in attractive end markets globally. The company remains committed to delivering incremental returns to shareholders, leveraging healthy cash flows. In 2021, Albemarle paid out dividends worth around $178 million to its shareholders. ALB has raised its quarterly dividend for the 27th straight year.

Albemarle has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. ALB is expected to see earnings growth of 425.3% in 2022. The company beat the Zacks Consensus Estimate for earnings in the prior four quarters, delivering an earnings surprise of 24.2%.

Innospec is a leading specialty chemicals company. The company strongly focuses on adding value to customers by delivering technologies and products.

Innospec has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 60 days. IOSP is expected to see earnings growth of 23.8% in 2022. The company beat the Zacks Consensus Estimate for earnings in the prior four quarters, delivering an earnings surprise of 20%.

Koppers is a leading provider of carbon compounds, wood treatment chemicals and treated wood products. Improved price impacts across its segments are aiding the company. KOP has recently improved its financial flexibility with an $800-million credit facility.

Koppers has witnessed upward earnings estimate revisions for 2023 in the past 30 days. KOP currently has a Zacks Style Score of A for Value, and B for Growth and Momentum.

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