Cummins Inc. ( CMI Quick Quote CMI - Free Report) showcased its hydrogen technology at a recent event. It also outlined plans on how management intends to evolve the fuel cell and hydrogen production business to further strengthen its base as a global power leader. With the heightening climate change concerns, the face of the auto industry is rapidly transforming. Investors are now intrigued with companies that offer green solutions to their transportation needs by ensuring zero carbon emissions. Amid this changing scenario, Cummins has the financial strength to invest in hydrogen and battery technologies as well as advanced diesel and natural gas powertrains. Highlights of the Event
The truck-engine giant shared plans of registering electrolyzer revenues of a minimum $400 million in 2025. Demand for electrolyzers is shooting up with the aim to utilize green hydrogen to substitute the lesser eco-friendly grey hydrogen in industrial processes.
At the same time, consumer interest in fuel cell technology is rising in many end-markets served. Hydrogen fuel cells, which generate electricity for vehicles’ motors through the chemical combination of stored hydrogen and atmospheric oxygen, with the emission of only water as a by-product, have been always been considered a green vehicle option. The diesel giant plans to cater to those markets where it sees prompt acceptance of these technologies, taking advantage of its technology leadership, customer relationships, and application know-how and support capabilities. The company also plans to continue investing in new state-of-the-art technologies, such as solid oxide fuel cells, that have a bright future in stationary power applications. Cummins’ management also discussed the pioneer role green hydrogen and fuel cells will play in limiting greenhouse gases and air emissions in order to fulfill experts’ recommendations to reduce global temperature rise. The company expects this pioneer technology to be adopted over time as it continues to innovate with reductions in costs. Cummins is counting on government support to pace up the adoption of hydrogen fuel cell solutions. Efforts to Revolutionize Hydrogen Technology Space
Cummins is integrating its powertrain competence, as well as fuel cell and hydrogen technologies to run a variety of applications, including transit buses, semi-trucks, delivery trucks, refuse trucks and passenger trains. Reportedly, the company has more than 2,000 fuel cell installations along with more than 500 electrolyzer installations.
Cummins product portfolio includes PEM fuel cell power modules and fuel cell powertrains. Moreover, the company is in the final stage of developing the largest PEM electrolysis plant in the world in Becancour, CA for Air Liquide. Cummins claims it will be the world’s largest electrolyzer, capable of creating 3,000 tons of hydrogen a year using hydroelectric power. In fact, Cummins has supplied electrolyzers for more than 50 hydrogen fueling stations. Cummins’ fuel cells are powering applications like the world’s first hydrogen fuel cell passenger trains from French rail manufacturer Alstom. It completed an 18-month trail covering 180,000 kilometers. The company has also supplied fuel cells for FAUN’s first electric refuse program, powering waste collection vehicles and sweepers in Europe, each zero-emission truck features 100% electric drive with a range of up to 560 kilometers. Cummins’ is also working with ASKO, Norway’s largest grocery wholesaler, to provide fuel cells integrated into four Scania electric trucks. On Nov 12, Cummins announced the decision to open a new facility in Herten, Germany, for the assembly of fuel cell systems for Alstom’s hydrogen trains. This new fuel cell site is anticipated to be operational in July 2021 and is a testament to the company’s commitment to enhance its hydrogen capabilities. Recently, Cummins – peers of which include Daimler AG ( DDAIF Quick Quote DDAIF - Free Report) and PACCAR Inc. ( PCAR Quick Quote PCAR - Free Report) – entered into an agreement with Navistar International Corporation ( NAV Quick Quote NAV - Free Report) to jointly develop hydrogen-fuel cell enabled class 8 truck. This vehicle will feature Cummins’ next generation fuel cell configuration and enable the company to advance its hydrogen technology for line haul trucks. All in all, Cummins’ latest strategy underscores the company’s long-term vision to become a leader in hydrogen fuel cell technology in order to achieve carbon neutrality by 2050. As the world transitions to a low-carbon future, Cummins has the financial stability to invest heavily in these technologies and further bolster its dominant position in shaping tomorrow’s hydrogen economy. Cummins currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Notably, shares of the company have appreciated 29.1%, year to date, compared with its industry’s rally of 29.5%. Zacks Names “Single Best Pick to Double”
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