Industrial gas major Linde says its project backlog remains strong at $7bn in sale-of-gas projects and is expected to grow by year-end, despite a delay to its $2bn clean hydrogen facility in Alberta, Canada.
Speaking on the company’s Q1 earnings call this week, CEO Sanjiv Lamba said the company expects to start up about $1bn-worth of projects from its backlog in the second half of the year.
“Despite everything you read in the news, we have a good pipeline of projects. The project win rate is looking particularly strong … given the circumstances,” he said, likely referring to wider macroeconomic turbulence and the Alberta delay.
The Alberta clean hydrogen facility, located in Fort Saskatchewan, will supply what is expected to be the world’s first net-zero ethylene and derivatives complex, currently being built by US-based chemicals firm Dow.
The project includes carbon capture and storage plus hydrogen infrastructure. Under a long-term on-site contract, Linde will build and operate an air separation unit and hydrogen production facility.
Dow announced in April that it was delaying construction of its $11.5bn Path2Zero project, citing concerns over global economic conditions and the impact of US tariffs.
It also said it wanted to save $600m in 2025 by reducing capital expenditure.
Linde downplayed the impact that this might have on its operations, pointing to contract protections in place for delays caused by customers.
“As you’d expect, most on-site contracts that we’ve had and continue to have build in contractual protection for [such] events,” said Lamba.
In its latest results, Linde reported $1.3bn in capital expenditure in Q1, with 58% allocated to backlog projects.
“We’re actively constructing the two largest projects in our history, so I anticipate elevated levels [of capital spend] for a few more quarters,” said CFO Matt White.
The other project is a $1.8bn blue hydrogen plant in Beaumont, Texas, which will supply clean hydrogen to a 1.1 million tonne-per-year blue ammonia project in the US Gulf Coast.
Originally developed by fertiliser company OCI, the project was acquired by Australian energy firm Woodside in 2024 for $2.35bn. Phase one is expected to start up in the second half of this year, with phase two targeting readiness for a final investment commitment in 2026.
