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Linde to Supply Gas to Major Low-Carbon Ammonia Project

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Key Takeaways

  • LIN to supply oxygen and nitrogen to Blue Point low-carbon ammonia facility in Louisiana.
  • LIN will build a $400M air separation unit, the largest on the Mississippi River corridor.
  • New ASU expands LIN Gulf Coast network, supporting growing clean energy demand in the region.

Linde plc (LIN - Free Report) has announced a long-term agreement to supply critical industrial gases to Blue Point Number One, a joint venture (JV) between CF Industries, JERA, and Mitsui & Co., for its upcoming low-carbon ammonia plant in Ascension Parish, LA. The world-scale facility, projected to produce 1.4 million metric tons of low-carbon ammonia annually, is set to be one of the largest of its kind globally.

LIN to Build Major ASU for Blue Point Project

As part of the agreement, Linde will invest over $400 million to build, own, and operate a new world-scale air separation unit (ASU) to provide oxygen and nitrogen to the Blue Point project. The ASU is expected to begin operations in 2029 and will be the largest such unit along the Mississippi River corridor in southeast Louisiana. This investment underscores Linde’s commitment to expanding its U.S. Gulf Coast infrastructure, which already includes multiple hydrogen and syngas production facilities.

LIN Expands Strategic Footprint in U.S. Gulf Coast

The new facility will become Linde’s third advanced ASU supporting an autothermal reforming (ATR) ammonia plant, leveraging experience from similar projects in Texas and Canada. The development strengthens Linde’s growing industrial gas network in a region witnessing increasing demand due to decarbonization and clean energy efforts.

Stakeholders Emphasize Strategic Partnership

Christopher Bohn, COO of CF Industries, emphasized Linde’s importance in driving the Blue Point JV forward, citing its experience and expertise as key to building a reliable low-carbon ammonia supply chain. Sean Durbin, Linde’s executive vice president for North America, described the project as a milestone in the company’s clean energy investment strategy in the Gulf Coast and reaffirmed support for Blue Point’s vision of scalable low-carbon ammonia infrastructure.

The Blue Point ammonia facility is poised to play a significant role in meeting the growing global demand for clean ammonia, widely seen as a solution for decarbonizing energy and industrial sectors.

LIN’s Zacks Rank & Key Picks

LIN currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) , Oceaneering International, Inc. (OII - Free Report) and RPC Inc. (RES - Free Report) . Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Oceaneering International and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.

The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.

The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.

RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities. 

The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A.


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