Linde Signs Long-Term Agreement to Supply Clean Hydrogen to Dow’s Path2Zero Project in Canada

Rhea-AI Summary

Linde (Nasdaq:LIN) has signed a long-term agreement to supply clean hydrogen to Dow's Fort Saskatchewan Path2Zero Project in Canada. The company will invest over $2 billion to build and operate a world-scale integrated clean hydrogen and atmospheric gases facility in Alberta. The complex will use autothermal reforming and Linde's proprietary HISORP® carbon capture technology to produce clean hydrogen and recover hydrogen from Dow's ethylene cracker off-gases.

The facility will supply clean hydrogen, nitrogen, and other services to support Dow's net-zero emissions integrated ethylene cracker and derivatives site. It will also provide clean hydrogen to other industrial customers for decarbonization. The complex will capture over 2 million metric tons of CO2 annually for sequestration. Set to be completed in 2028, it will be Canada's largest clean hydrogen production facility and one of the largest globally.

Positive

• Linde secures long-term agreement with Dow for clean hydrogen supply
• Over $2 billion investment in world-scale clean hydrogen facility
• Facility will be the largest clean hydrogen production site in Canada
• Project aligns with Linde's strategy of developing high-quality projects with secured off-take
• Potential for additional revenue from supplying clean hydrogen to other industrial customers

Negative

• Large capital expenditure of over $2 billion
• Project completion not until 2028, indicating a long wait for returns on investment

Insights

Financial Analyst

This $2 billion investment by Linde represents a significant commitment to the clean hydrogen market, potentially positioning the company as a leader in this growing sector. The long-term agreement with Dow provides a stable revenue stream, reducing investment risk. The project's scale, being the largest clean hydrogen facility in Canada, could offer economies of scale, potentially improving profit margins.

The partnership with Dow, a major industry player, may open doors to additional collaborations in the future. The ability to capture over 2 million metric tons of CO2 annually could provide additional revenue streams through carbon credits or offsets. However, investors should consider the project completion timeline (2028) and potential regulatory changes in the interim that could impact profitability.

Environmental Technology Expert

Linde's investment in clean hydrogen production using autothermal reforming and proprietary HISORP® carbon capture technology marks a significant advancement in industrial decarbonization. The facility's ability to recover hydrogen from Dow's ethylene cracker demonstrates innovative circular economy principles in industrial processes.

The project's scale, capturing over 2 million metric tons of CO2 annually, represents a substantial contribution to emissions reduction efforts. This aligns with growing global demands for low-carbon industrial solutions. The versatility of the facility to supply clean hydrogen to other industries indicates potential for broader market impact and accelerated adoption of hydrogen in various sectors.

Market Research Analyst

This agreement signifies a growing trend in industrial decarbonization, with major players like Dow committing to net-zero emissions projects. The investment by Linde reflects confidence in the long-term demand for clean hydrogen, potentially indicating a shift in market dynamics towards cleaner energy sources.

The project's location in Alberta, Canada, could benefit from supportive government policies and potentially attract more clean energy investments to the region. The scale of this project, being one of the largest globally, may set new industry benchmarks and influence future investments in the sector. Investors should monitor how this project impacts Linde's market share in the industrial gases and clean energy sectors, as well as its effect on the company's overall valuation.

WOKING, UK / ACCESSWIRE / August 27, 2024 / Linde (Nasdaq:LIN) announced today it has signed a long-term agreement for the supply of clean hydrogen to Dow's Fort Saskatchewan Path2Zero Project. The company will invest more than $2 billion to build, own and operate a world-scale integrated clean hydrogen and atmospheric gases facility in Alberta, Canada.

Linde's new on-site complex will use autothermal reforming, combined with Linde's proprietary HISORP ^® carbon capture technology, to produce clean hydrogen and will also recover hydrogen contained in off-gases from Dow's ethylene cracker. In the first phase, Linde will supply the clean hydrogen, nitrogen and other services to support Dow's world-first net-zero emissions integrated ethylene cracker and derivatives site ¹ . Linde's new facility will also supply clean hydrogen to existing and new industrial customers seeking to decarbonize their operations. In total, Linde's complex will capture carbon dioxide emissions for sequestration in excess of 2 million metric tons each year.

Upon completion in 2028, Linde's new complex in Alberta will be the largest clean hydrogen production facility in Canada, and one of the largest globally. It will be Linde's largest single investment and its second new world-scale clean hydrogen project, following the announcement of its project to supply clean hydrogen to a major blue ammonia project in the U.S. Gulf Coast.

"Linde is helping to build a more sustainable future," said Sanjiv Lamba, Chief Executive Officer, Linde. "This landmark project aligns with our strategy of developing high-quality projects with secured off-take. Our technology, experience and execution are enabling the transition to a cleaner economy. We are proud to partner with Dow in its mission to decarbonize its Fort Saskatchewan site and are appreciative of the support of the Province of Alberta and the Federal Government."

"Our business strategy to decarbonize our assets and drive growth while enabling higher shareholder returns is central to Dow's long-term success," said Jim Fitterling, Chair and Chief Executive Officer, Dow. "Having support from collaborators and partners across the value chain is essential. We're glad to have Linde as a partner on this industry-leading project."

As one of the world's leading industrial gases and engineering companies, Linde is playing a key role in the clean energy transition. The company is actively helping its customers to decarbonize their operations with the latest hydrogen technologies through its world-class engineering organization, key alliances and ventures, and leveraging its extensive experience and infrastructure. Linde is developing clean hydrogen projects across a range of applications and industries and growing its established hydrogen business along the entire value chain.

¹ with respect to scope 1 and 2 greenhouse gas emissions.

About Linde

Linde is a leading global industrial gases and engineering company with 2023 sales of $33 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet.

The company serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases and technologies are used in countless applications including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity & specialty gases for electronics. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.

For more information about the company and its products and services, please visit www.linde.com

Contacts:
Investor Relations Juan Pelaez Phone: +1 203 837 2213 Email: juan.pelaez@linde.com	Media Relations Anna Davies Phone: +44 1483 244705 Email: anna.davies@linde.com

SOURCE: Linde plc

View the original press release on accesswire.com

FAQ

What is the value of Linde's investment in the clean hydrogen facility in Alberta, Canada?

Linde (LIN) will invest more than $2 billion to build, own, and operate the world-scale integrated clean hydrogen and atmospheric gases facility in Alberta, Canada.

When is Linde's clean hydrogen facility in Alberta expected to be completed?

Linde's (LIN) new clean hydrogen complex in Alberta is expected to be completed in 2028.

How much carbon dioxide will Linde's new facility in Alberta capture annually?

Linde's (LIN) new facility in Alberta will capture carbon dioxide emissions for sequestration in excess of 2 million metric tons each year.

What technologies will Linde use in its clean hydrogen production facility in Alberta?

Linde (LIN) will use autothermal reforming combined with its proprietary HISORP® carbon capture technology to produce clean hydrogen at its new facility in Alberta.