CLAYTON, Mo. - Olin Corporation (NYSE: OLN) and Plug Power Inc. (NASDAQ: PLUG) have announced the commissioning of a significant hydrogen liquefaction plant in St. Gabriel, Louisiana, through their joint venture Hidrogenii. This facility, one of the largest of its kind in North America, represents a substantial step in enhancing the hydrogen supply chain within the region and advancing the United States’ shift toward low-carbon energy resources. Olin, with its market capitalization of $2.34 billion and annual revenue of $6.54 billion, brings substantial industrial expertise to this venture. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value metrics.
The St. Gabriel plant will liquefy hydrogen produced by Olin for distribution across the country, supporting Plug’s material handling customer base and introducing Plug’s innovative spot pricing market. The facility has a maximum capacity to liquefy 15 metric tons per day (TPD) of hydrogen, which boosts Plug’s total production capacity to 40 TPD.
Andy Marsh, CEO of Plug, emphasized the strategic importance of the Louisiana plant in the expansion of the U.S. hydrogen network and its contribution to Plug’s financial growth by providing a reliable and cost-effective source of hydrogen, reducing dependency on external suppliers. Olin’s President and CEO, Ken Lane, aligned the joint venture with Olin’s strategy of pursuing high-value opportunities that complement the company’s capital allocation framework. For detailed analysis of Olin’s strategic initiatives and financial outlook, investors can access comprehensive research reports on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
Hidrogenii, established in 2022, is a collaboration that combines Olin’s industrial expertise with Plug’s hydrogen technology leadership. The venture aims to meet the increasing demand for domestically sourced hydrogen across various markets. The St. Gabriel plant joins Plug’s existing production sites in Woodbine, Georgia, and Charleston, Tennessee, as part of a broader strategy to develop a national green hydrogen network.
Olin Corporation is a global leader in the manufacturing and distribution of chemical products and ammunition, while Plug Power is at the forefront of building the hydrogen economy with its comprehensive hydrogen solutions. This new plant in Louisiana is a testament to the companies’ commitment to fostering energy independence and large-scale decarbonization.
This development is based on a press release statement and marks a milestone in the ongoing efforts to establish a robust infrastructure for hydrogen energy in the United States.
In other recent news, Olin Corporation reported several significant developments. The company announced a quarterly dividend of $0.20 per share, marking its 393rd consecutive dividend, which will be paid on March 14, 2025, to shareholders on record as of March 6, 2025. This announcement underscores Olin’s commitment to providing consistent returns to shareholders. In terms of leadership changes, Olin appointed retired U.S. Army General Edward Daly to its Board of Directors, bringing extensive experience in defense procurement and logistics.
Additionally, Olin’s stock has been subject to several analyst revisions. Citi reduced its price target for Olin shares to $30 while maintaining a Buy rating, reflecting updated financial estimates and challenges in the chlor-alkali industry. On the other hand, JPMorgan downgraded Olin’s stock from Overweight to Neutral, cutting the price target to $28 due to anticipated margin pressures and lower expected contributions from certain segments. BMO Capital Markets also adjusted its price target for Olin to $34, maintaining a Market Perform rating and noting potential near-term earnings challenges.
These analyst updates highlight varying perspectives on Olin’s financial outlook, with some projecting potential improvements in certain business segments. Despite these challenges, Olin’s robust free cash flow generation is expected to support significant stock buybacks, reflecting the company’s financial strength amidst current headwinds.
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