Linde (LIN -0.17%) already has a multibillion-dollar hydrogen business today and several catalysts for the future. In this Motley Fool Live clip from "The High Energy Show," recorded on May 31, Fool.com contributor Jason Hall shares why he believes Linde is a top industrial gas company investors should consider today.
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Jason Hall: Linde is an industrial gas manufacturer, very diversified business, great margins. One of like four companies in this industry that have like 80 percent of global market, they're pretty dominant businesses. Linde already has a multibillion-dollar hydrogen business today. It has a partner in a venture that's working on.
Travis Hoium: That's gray hydrogen.
Jason Hall: Again, gray hydrogen coming from natural gas, so it's methane steam reforming, so not great for the environment. But they are working on some ways to move to green hydrogen, that blue hydrogen, so Google blue hydrogen, green hydrogen, brown hydrogen, gray hydrogen, and you'll learn a lot and you'll lose two hours. Just be prepared for that, so I think I want to say Linde for the same reason that we talked about companies like TotalEnergies and Phillips 66. They are these large companies with massive existing infrastructure and demand from customers on the other end. They have established relationships with large energy users. If a company is buying a lot of industrial gases, they're also using a lot of energy, so they're going to be very interested in using hydrogen for things like running that DRI facility for your steelmaker, so there's just a lot of economies of scale that are already there. Linde just so happens to be one of the best-run industrial gas companies on earth. I think it's a little pricey right now, I really do. But I think it has a lot of future catalysts, and it's definitely one we should think about putting in our basket.
