WOKING, UK - Linde (NASDAQ:NYSE:LIN), a global industrial gases and engineering company, has announced that its subsidiary, White Martins, will construct and operate a new green hydrogen production facility in the southeast region of Brazil. The plant, which will be a five-megawatt pressurized alkaline electrolyzer, is slated to begin operations in 2025 and will be situated adjacent to the company's air separation unit in Jacareí, São Paulo.
This initiative is part of Linde's strategy to support the clean energy transition in Brazil. The electrolyzer will be fueled by renewable energy sources, including local solar and wind projects, to produce green hydrogen that has been independently certified. The hydrogen produced at the new facility will be supplied to Cebrace, a glass manufacturer, to help reduce emissions from their glass melting furnaces in Jacareí.
Additionally, the plant will serve the growing demand for sustainable hydrogen among various industrial sectors such as metals, food, and chemicals. White Martins has the distinction of being the first in South America to produce green hydrogen on an industrial scale with international certification, having started production at its Pernambuco plant in 2022.
Gilney Bastos, President South Latin America at Linde, expressed the company's commitment to aiding Brazil's energy transition and supporting customers like Cebrace in their decarbonization efforts.
Linde's involvement in the energy sector extends to various applications and industries, with a focus on developing clean energy projects and helping customers decarbonize their operations using advanced carbon capture and hydrogen technologies.
The company's 2023 sales reached $33 billion, serving markets across chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals, and mining.
The information regarding Linde's new green hydrogen plant is based on a press release statement.
InvestingPro Insights
Linde (NASDAQ:LIN) continues to demonstrate its role as a prominent player in the Chemicals industry, with strategic investments like the new green hydrogen production facility in Brazil. The company's management has shown confidence in its growth, as evidenced by its aggressive share buyback program. Linde's commitment to shareholders is further underscored by its impressive track record of raising its dividend for over three decades, now standing at 33 consecutive years.
From an investment perspective, Linde's financial metrics offer a mixed picture. The company's P/E ratio, as of the last twelve months ending Q4 2023, stands at 34.52, indicating a high earnings multiple, which may suggest that the stock is trading at a premium compared to its near-term earnings growth. However, the PEG ratio during the same period is 0.55, hinting that the stock may be undervalued when factoring in its growth rate. Additionally, Linde's Price / Book ratio is 5.42, which could be seen as relatively high, reflecting a premium on its net asset value.
Investors interested in Linde's performance should note the company's latest revenue figures, which show a slight decline of 1.53% in the last twelve months as of Q4 2023. Despite this, the quarterly revenue growth in Q4 2023 was positive at 5.1%, indicating a potential turnaround.
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