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>>> Linde (LIN) to Supply Clean Hydrogen to OCI's Texas Plant


Zacks Equity Research

February 8, 2023


https://finance.yahoo.com/news/linde-lin-supply-clean-hydrogen-160704607.html


Linde plc LIN entered an agreement to invest $1.8 billion to supply clean hydrogen to OCI’s blue ammonia facility in Texas.

Linde will supply OCI with clean hydrogen by capturing more than 1.7 million metric tons of carbon dioxide emissions per year once the facility goes online in 2025. The complex will be integrated into Linde’s existing gas infrastructure on the U.S. Gulf Coast.

Linde will develop, own and operate an on-site complex at the OCI facility, which will include auto thermal reforming, a process to produce low-carbon hydrogen with carbon capture. The facility will also include a massive air separation plant.

The agreement has been signed as the world seeks low-carbon sources to meet energy requirements and reduce emissions. Per the International Renewable Energy Agency, ammonia production makes up about 15-20% of carbon dioxide emissions from the chemical sector. However, low-carbon ammonia production methods, such as using blue hydrogen, can reduce emissions.

Linde will also utilize its pipeline network to provide clean hydrogen to its customers in the Gulf Coast area looking to decarbonize their operations while also supplying atmospheric and rare gases.

Linde’s capabilities are enabling the transition to a low-carbon-intensity economy. In 2022, Linde signed multiple deals to develop clean hydrogen projects amid pressure to reduce emissions and scale up renewables to meet the EU’s net-zero emission goal by 2050.

Price Performance

Shares of Linde have outperformed the industry in the past three months. The stock has gained 7.6% compared with the industry’s 6.8% growth.

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