SLB Forms Partnership to Accelerate Green Hydrogen Technology

SLB SLB entered a partnership with John Cockerill Hydrogen to accelerate the development and deployment of pressurized alkaline electrolyzers. The collaboration aims to significantly advance the green hydrogen revolution by leveraging the combined strengths of both companies.

John Cockerill Hydrogen, a global leader in hydrogen technology, brings to the table a robust commercial portfolio of pressurized alkaline electrolyzers and deep expertise in technology development. The company's portfolio includes 5MW stacks and a comprehensive 30MW pressurized alkaline electrolyzer system. Each of these systems is capable of producing more than 12 tons of clean hydrogen per day, which is sufficient to fuel 3,000 cars or generate 66 tons of clean ammonia per day.

Hydrogen produced through electrolysis using renewable power is considered clean due to its low carbon footprint. Currently, most commercial clean hydrogen production utilizes alkaline electrolyzers, though other technologies, such as proton exchange membranes and solid oxide electrolyzers, are used.

SLB, with nearly a century of experience in deploying complex engineered solutions for the energy sector globally, will play a crucial role in this partnership. The company will utilize its technology industrialization expertise, extensive global footprint and service delivery capabilities to expedite the worldwide deployment of John Cockerill Hydrogen's technology portfolio. Additionally, SLB will collaborate closely with John Cockerill Hydrogen to advance the development and deployment of next-generation alkaline electrolyzers.

Hydrogen holds substantial promise as a mechanism for decarbonization across various industrial sectors due to its clean-burning properties. However, not all hydrogen is created equal, and producing low-carbon hydrogen at scale is essential for industrials to meet critical decarbonization goals.

There is an urgent need for broader access to low-carbon hydrogen for industrials to decarbonize their operations and for the world to achieve crucial net-zero targets. The partnership between SLB and John Cockerill Hydrogen is poised to play a pivotal role in meeting this need by industrializing proven technologies, and rapidly innovating and deploying new ones.

By combining their strengths, SLB and John Cockerill Hydrogen will deliver scalable low-carbon hydrogen solutions, providing the necessary technology to decarbonize industrial operations and contribute to global net-zero targets. This collaboration represents a significant step forward in the green hydrogen revolution, bringing us closer to a sustainable and decarbonized future.

Zacks Rank & Key Picks

Currently, SLB carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently carry a Zacks Rank #2 (Buy).

USA Compression Partners, LP USAC is one of the largest independent natural gas compression services providers across the United States in terms of fleet horsepower. USA Compression Partners earns its revenues from the overall horsepower use of natural gas transported rather than the price. As such, the partnership is largely insulated from fluctuations in commodity prices.

The Zacks Consensus Estimate for USAC's 2024 and 2025 EPS is pegged at 77 cents and 98 cents, respectively. The company has a Zacks Style Score of B for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Enterprise Products Partners EPD is among the leading midstream energy players in North America.  It has an extensive network of pipelines that spreads across more than 50,000 miles.

The Zacks Consensus Estimate for EPD's 2024 and 2025 EPS is pegged at $2.71 and $2.87, respectively. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.

Sunoco LP SUN is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes more than 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.

The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $5.15 and $4.48, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days. The company has a Zacks Style Score of A for Value and Growth.

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