Air Liquide and Siemens Energy are joining forces for the development of hydrogen and electrolyzer technologies in Europe.
Financial terms of the cooperation weren’t disclosed. As part of the partnership, Air Liquide (0NWF) and Siemens Energy will combine their expertise in PEM (Proton Exchange Membrane) electrolysis technology.
The two companies will focus on large industrial-scale hydrogen projects to lay the ground for mass manufacturing of electrolyzers in Europe, especially in Germany and France. In addition, they will target R&D activities to co-develop next generation electrolyzer technologies.
Hydrogen is slated to play an important role in attaining the European Union’s objectives for CO2 and greenhouse gas emission reduction. Accelerated production of hydrogen via large-scale PEM electrolysers is sought to help lower costs and meet the rapidly growing demand for climate change, the companies said in a joint statement.
“Hydrogen is a key enabler of the energy transition. In the context of an unprecedented acceleration in Europe of hydrogen technologies and markets, the time to scale-up is now, notably in France and Germany,” Air Liquide CEO Benoît Potier said. “The partnership between Air Liquide and Siemens Energy paves the way for the creation of a leading European ecosystem capable of supplying decarbonised hydrogen at competitive prices and promoting the emergence of a low-carbon society.”
Furthermore, Air Liquide and Siemens Energy plan to apply for large EU projects for hydrogen, funded by the French and German governments. The French government is expected to invest €7 billion in hydrogen until 2030 to render its economy more competitive and more decarbonised. (See Air Liquide stock analysis on TipRanks)
Earlier this month, Barclays analyst Alex Stewart cut Air Liquide’s price target to €154 from €155 but reiterated a Buy rating.
The rest of the Street is cautiously optimistic about the stock. The Moderate Buy consensus rating is backed by 7 Buy ratings versus 5 Hold ratings. The average analyst price target stands at €147.67 and implies 8.4% upside potential to current levels.
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