Sanjiv Lamba, CEO of Linde PLC, is juggling the interests of environmentalists and investors as he leads the industrial gas producer in its efforts to reduce carbon emissions. Despite emitting 38 million tons of carbon dioxide annually, Lamba is committed to environmental sustainability. He plans to achieve net zero carbon emissions for Linde’s operations and is investing in a hydrogen plant in Texas that will sequester CO2 underground. This move towards green energy is in line with Linde’s vision of leading the way in hydrogen energy.
While the green energy revolution is facing challenges, Linde stands out as a profitable company in the industry. With revenues of $33 billion and net profits of $6.2 billion, Linde is a success story amidst the struggles of other clean energy companies. Lamba, with a background in finance, is focused on achieving profitability while also prioritizing environmental goals. He emphasizes the importance of hydrogen energy and the potential for it to be a profitable and sustainable option for industrial customers.
Lamba discusses the production of hydrogen and the different methods for obtaining this abundant element. While renewable sources offer cleaner alternatives, they come with higher production costs. Linde is investing in electrolyzers to be more cost-competitive in the future. However, he maintains a realistic approach, acknowledging the challenges of making renewable hydrogen economically viable and emphasizing the need for ongoing technological advancements to improve efficiency.
The history of Linde dates back to the late 19th century when German engineer Carl von Linde founded the precursor to the company. Von Linde’s breakthrough in air separation paved the way for Linde’s success in the industrial gas market. The company’s focus on technology and innovation has enabled it to stay ahead in a competitive industry. Linde’s product lineup includes oxygen, nitrogen, and specialized gases used in various industries, such as steel production, food freezing, and chip manufacturing.
Linde’s rivalry with Air Products & Chemicals, another industrial gas company, reflects the shared environmental goals and competition in the market. While both companies seek to reduce their carbon footprint and invest in green hydrogen production, Linde has emerged as the preferred choice on Wall Street. With a higher enterprise value and stock performance, Linde’s strategic approach to sustainability and profitability has positioned it as a leader in the industry. Lamba’s focus on incremental improvements in operating margin aligns with the company’s long-term goal of achieving net zero emissions by 2050.
