Linde banking on blue hydrogen projects; income up by 3%

Industrial gases firm Linde says it is confident of attaining US$8-US$10 billion worth of clean energy projects over the next few years, driven by blue hydrogen and US 45Q tax credits. The firm adds it will double down on its blue hydrogen plans and will only pursue green hydrogen projects where low-cost renewables make it viable.

Linde reported Q1 2025 net income of US$1.67 billion (up 3% from Q1 2024) on flat year-on-year sales of US$8 billion, yet expanded its adjusted operating margin to 30% through pricing and productivity gains.

According to CEO Sanjiv Lamba, Linde’s goal of achieving clean energy projects is supported by two major projects currently underway, and despite slower momentum around large-scale green hydrogen.

He added that additional project trains and new developments in the Middle East and Europe could provide a further boost.

Linde originally announced a US$50 billion clean energy opportunity two years ago, as part of a longer-term strategy. But Lamba stressed that near-term activity is focused almost entirely on blue hydrogen, with green hydrogen still five to seven years away from commercial scale.

Lamba noted that while much attention centres on the US Inflation Reduction Act, it is the earlier-enacted 45Q tax credit (worth US$85 per tonne of captured CO2) that is really driving Linde’s current blue hydrogen project economics.

He also said that Linde would continue to approach green hydrogen projects opportunistically, moving forward where renewable electricity is abundant and cheap enough to keep down costs.

“The green hydrogen space still requires significant reductions in capital intensity before it reaches an inflection point,” he said.

He also highlighted that several of Linde’s existing blue hydrogen projects could scale further through the addition of extra trains, while new opportunities in Europe and the Middle East are under active development.