Linde India: Not a Hydrogen Play Yet

Source: Transcript of 86th AGM of Linde India Ltd

4 replies on “Linde India: Not a Hydrogen Play Yet”

That is a wrong conclusion. HYCO gas is syn gas, is a combination gas of carbon monoxide and hydrogen. HYCO is not HYGROGEN.
It was specifically clarified that green hydrogen and carbon capture are all in Linde India. As a part of the global deal, Linde US had sold HYCO business. Refer to page 54 and 55 of the transcript and PAGE 48 where a detailed explanation has been given on the strategy towards hydrogen.

Syn Gas or HYCO is not HYDROGEN, but a combination gas of carbon monoxide + hydrogen, which comes in a coal gasification process.
But, the real growth in future which Substitution of coal with hydrogen in industrial processes in Steel, Linde India will participate. Clarified…

page 48 of the 2022 AGM transcript reads ” The next question and again, this is a question that many of you have asked and
I want to spend a little bit of time on this question because I don’t intend in repeating it. It’s around the whole energy, the whole clean energy, hydrogen, hydrogen fuel, etc. Obviously, from reading press reports, I’m aware that there is a lot of talk at this moment in time around this topic, and a lot of interest and obviously a lot of interest amongst the shareholders. So, that’s great and, thank you for that support and for your questions in that area. I think one of the things
that I would say personally, is that, at this moment in time, I think the
management team here are finalizing their thoughts and their strategy around this area. And that’s probably why at this stage, you haven’t seen an awful lot of it in the annual report. So, that strategy is being looked at and is being finalized. But until that happens, the Board and the management of the company will execute potential clean energy opportunities, such as hydrogen fueling on a case-by-case basis, depending on various factors like our ability to undertake the opportunity in a safe manner, the accessibility of cost effective
and reliable technology, obviously the returns as we do with all other projects of this nature. So, that is the response in this area. We are looking at these opportunities as and when they are available. And then we will apply a matrix of requirements to see whether we will carry them out or not. ”
Again on page 54 of the transcript ”
” So, the last AGM, the Chairman, so me has specifically mentioned that whole new technology including hydrogen will be available to India. So, in response to that Linde PLC provides appropriate technology available with it to all its subsidiaries across the world, to enable them to carry out their respective businesses in their respective jurisdictions, as per approved terms and conditions. So, that’s the answers to those bunch of questions. The next one is Indira Jain. First one was about the order book and PED, which we’ve already mentioned. The next one was about how many industrial customers from sectors such as steel are exploring the use of carbon capture and hydrogen in their operations. From our point of view, we are glad that some of our customers are evaluating carbon capture and hydrogen in their operations. This could provide good growth opportunities to our company in the future. And again, we will evaluate these opportunities on an as and when basis “

All Linde said is to undertake the opportunity if 3-4 parameters satisfied – safe manner (safety), accessibility to cost effective and reliable technology and other parameters.

In short – they too awaiting for clarity to emerge from international experience and once the process/use case and most imp from Indian perspective – regulations set, because Hydrogen consuming is nothing short of mini nuclear reactor, it will come to India.

They may divert it max to JV.

Though 3-4 other pvt entities are also having presence in India, so can not be ruled out 100% that H2 ii not go to listed one.

Linde india and Praxair India Pvt Ltd have a JV, which does the operation and maintenance for both cos for maximizing synergies, AND THE NEW BUSINESS IS DIVIDED BASEE ON regions- East, North and West of India is Linde , and South and Central is Praxair India. So they cannot randomly give business to Praxair India Pvt. Besides, all the incumbents clients and plants in any location will remain forever with respective companies. Like, through, South is Praxair India domain, Linde India had a small unit in Trichy, TN, they announced yesterday, a brand new packaging gas plant, in same location, run 100% by women.
The protocol of business split is decided in March 2020.

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