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Linde (LIN) Picks Cummins to Power New York Green Hydrogen Unit

Linde plc LIN has chosen Cummins Inc. CMI to power its largest green hydrogen facility in the United States.

Cummins will supply a 35-megawatt proton exchange membrane (PEM) electrolyzer system for the Linde-operated hydrogen production facility in New York.

Electrolyzers use electricity to convert water molecules into hydrogen and oxygen. The hydrogen can then be used to generate power for industrial, chemical and other applications. Cummins’ advanced electrolyzer system is designed for easy on-site installation with the ability to boost production if required.

Cummins’ electrolyzer will be powered by hydropower, making the end-product green or carbon-free hydrogen. The facility is likely to be Linde’s largest U.S. green hydrogen facility and represents significant progress in advancing the green hydrogen economy.

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Cummins has an extensive experience in advanced technology and engineering capabilities. The company has the capabilities to innovate across a broad portfolio of renewable hydrogen and zero-emission technologies, including PEM, alkaline and solid oxide electrolyzers.

Cummins expects green hydrogen to play a crucial role in reducing emissions in some hard-to-abate industries facing strict climate targets. Cummins initially projected that its electrolyzer business would generate annual revenues of $400 million by 2025. By comparison, Cummins reported total revenues of $24 billion in 2021.

The project highlights Cummins’ pledge to enhance the green hydrogen economy and its ability to support large-scale renewable hydrogen production. The project aims to support the rising demand and drive to contribute to the green hydrogen market.

Linde is currently one of the leading hydrogen producers globally. It is likely to increase the company’s green liquid hydrogen production capacity in the United States more than twice. The Niagara Falls, NY-based facility is expected to be up and running by 2025.

Price Performance

Shares of Linde have outperformed the industry in the past six months. The stock has gained 13.7% compared with the industry’s 8.2% growth.

 

Zacks Investment Research
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 Commercial Metals Company CMC, currently sporting a Zacks Rank #1 (Strong Buy), and Innospec Inc. IOSP, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals Company manufactures, recycles and markets steel and metal products, related materials and services. CMC’s net debt to trailing 12-month adjusted EBITDA ratio is at 0.5 at the end of the fiscal second quarter, while net debt to capitalization is just 14%.

Commercial Metals Company is expected to see earnings growth of 27.2% in 2022. CMC beat the Zacks Consensus Estimate for earnings in the prior four quarters, delivering an earnings surprise of 19.7%.

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

Innospec is expected to see earnings growth of 30.4% in 2022. The company beat the Zacks Consensus Estimate for earnings in the prior four quarters, delivering an earnings surprise of 25.6%.

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Cummins Inc. (CMI) : Free Stock Analysis Report

Commercial Metals Company (CMC) : Free Stock Analysis Report

Linde plc (LIN) : Free Stock Analysis Report

Innospec Inc. (IOSP) : Free Stock Analysis Report

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