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Air Liquide (AIQUY) and ENEOS Team Up for Low-Carbon Hydrogen

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Air Liquide (AIQUY - Free Report) and ENEOS Corporation — Japan’s leading energy company — have inked a Memorandum of Understanding (MoU) to collaborate on expediting the advancement of low-carbon hydrogen in Japan and contributing to the ongoing energy transition. AIQUY is a global leader in gases, technologies and services for Industry and Health.  

The strategic partnership aims to leverage ENEOS' robust energy infrastructure and market presence in Japan alongside Air Liquide's extensive experience spanning over 60 years across the entire hydrogen value chain. This includes expertise in production, liquefaction, transport, storage, distribution and proficiency in Carbon Capture, Utilization and Storage (CCUS).

The collaboration will encompass the full spectrum of the low-carbon hydrogen value chain. In the upstream segment, the partners will explore the development of low-carbon hydrogen production, employing CCUS and electrolysis technologies. They will evaluate potential cooperation in establishing an international liquid hydrogen supply chain to cater to the Japanese market from overseas. In the downstream segment, the partnership envisions joint initiatives to advance hydrogen mobility in Japan, including the development of a hydrogen refueling station infrastructure.

Air Liquide Price and Consensus


Air Liquide Price and Consensus

Air Liquide price-consensus-chart | Air Liquide Quote


Air Liquide and ENEOS will explore collaborative opportunities for innovation along the entire hydrogen supply chain. By uniting the strengths of two industry leaders, this collaboration is anticipated to contribute to the integration of hydrogen as a pivotal element in the decarbonization of industry and mobility in Japan. This partnership aligns seamlessly with Air Liquide's commitment to advancing in the energy transition, as outlined in its strategic plan ADVANCE, which intricately links financial and non-financial performance.

ENEOS is considering Methylcyclohexane (MCH) as its primary hydrogen carrier — a Liquid Organic Hydrogen Carrier (LOHC) that remains liquid at ambient temperature and pressure, facilitating easy handling, storage and transport. Through this MoU, both companies are exploring the potential use of liquefied hydrogen in the future, further contributing to the realization of a decarbonized society.

Commenting on the collaboration, ENEOS expressed confidence that partnering with Air Liquide, one of the world's largest industrial gas companies, will establish a solid foundation for leading the energy transition and sustaining energy supply in Japan within the framework of a carbon-neutral society.

Shares of Air Liquide have gained 28.7% in the past year compared with a 13% fall of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

Air Liquide currently carries a Zacks Rank #2 (Buy).

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