Linde’s clean energy projects are seeing a slow down in momentum as the company aims to ensure only ‘high quality’ projects are taken to final investment decision (FID).
Having made the point that Linde will invest $8-10bn in clean energy projects in the next few years, CEO Sanjiv Lamba highlighted the fact that only around 7% of projects make it to FID, ‘which I think is a reflection of the hype dying down,’ he said during an earnings call yesterday (2nd May).
“I see momentum on clean energy projects moderating a little bit. We are seeing that there is a lot more effort now in upfront feasibility studies and feed studies to ensure that there is greater diligence as projects are being taken to FID.”
Citing a study from McKinsey that shows only 6.8% of such projects make it to FID, Lamba noted that the slow-down is enabling ‘high quality projects’ to surface and move forward.
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