Linde plc (NASDAQ:LIN) shares are trading higher today. The company disclosed a long-term agreement to supply clean hydrogen to Dow Inc.'s (NYSE:DOW) Fort Saskatchewan Path2Zero Project.
The company plans to invest over $2 billion to build, own, and operate an integrated clean hydrogen and atmospheric gases facility in Alberta, Canada.
When completed in 2028, the new complex in Alberta will be Canada's largest clean hydrogen production facility and one of the largest worldwide.
In the first phase, Linde will supply clean hydrogen, nitrogen, and other services to support Dow's net-zero emissions integrated ethylene cracker and derivatives site.
Sanjiv Lamba, Chief Executive Officer, Linde, said, "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."
Additionally, Linde's facility will supply clean hydrogen to industrial customers aiming to decarbonize. The complex will capture over 2 million metric tons of carbon dioxide annually for sequestration.
This will be Linde's biggest single investment and its second world-scale clean hydrogen project, following its announcement on the U.S. Gulf Coast blue ammonia project.
Jim Fitterling, Chair and Chief Executive Officer, Dow stated, "Our business strategy to decarbonize our assets and drive growth while enabling higher shareholder returns is central to Dow's long-term success."
Investors can gain exposure to LIN via IShares U.S. Basic Materials ETF (NYSE:IYM) and Materials Select Sector SPDR (NYSE:XLB).
Price Action: LIN shares are up 0.60% at $471.29 at the last check Tuesday.
Photo via Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
