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Cummins & NPROXX to Form JV for Hydrogen Storage Tanks

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Cummins Inc. (CMI - Free Report) recently signed an agreement with NPROXX to form a joint venture (JV) for hydrogen storage tanks. Cummins and NPROXX will each own 50% of the new partnership and are expected to close the deal by the end of the first quarter of 2021. The jv will be included as part of Cummins’ New Power business segment.

The JV, which will still operate under the NPROXX name, will provide hydrogen and compressed natural gas storage products to customers for both on-road and rail applications. The collaboration will also bring rapidly-increasing hydrogen capability to Cummins, in order to expand its fuel cell and hydrogen-processing technology capabilities.

Cummins is committed to leading the way in its efforts toward a decarbonized future, which will require multiple power solutions, including advanced diesel, natural gas, electrified power, fuel cells, hybrids and other solutions. The addition of hydrogen storage to Cummins’ existing capabilities in hydrogen production and fuel cells will enable the firm to accelerate the viability and adoption of these technologies in commercial markets.

In 2019, Cummins announced two deals to expand its footprint in the hydrogen sector, including the acquisition of Hydrogenics Corporation. The purchase provided the firm with both proton exchange membrane (PEM), and alkaline fuel cells electrolyzers to generate hydrogen.

Further, Cummins focuses on introducing innovative products and strategies, such as partnerships, in order to record high returns. Besides widening the product portfolio, it collaborated with Hyundai Construction and Isuzu Motors in October 2018. The collaboration with Hyundai is to develop an electric powered mini excavator, while the one with Isuzu Motors will discover opportunities in the powertrain area. It has also invested in LOOP Energy and in the development of solid oxide fuel cells. In addition, Cummins has more than 2,000 fuel cell installations across a variety of on and off highway applications as well as more than 500 electrolyzer installations.

Zacks Rank & Stocks to Consider

Cummins currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 3.7%, year to date, compared with the industry’s fall of 3.9%.

Some better-ranked stocks are Niu Technologies (NIU - Free Report) , AgroFresh Solutions, Inc. and AngloGold Ashanti Limited (AU - Free Report) , each carrying a Zack Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Shares of Niu have surged 87.5% year to date, as against the industry’s decline of 12.9%.

Shares of AgroFresh have gained 30.6%, year to date, compared with industry’s rise of 28.1%.

Shares of AngloGold have rallied 30%, year to date, compared with the industry’s rise of 22.5%.

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