Linde Stock Drops 3.64% Amid Carbon Emission Concerns

On April 7, 2025, Linde's stock experienced a 3.64% drop in pre-market trading, reflecting investor concerns and market dynamics.

Linde, a leading industrial gas and engineering company, has been actively exploring ways to reduce carbon emissions in the steel industry. One of the key areas of focus is the use of methanation technology, which involves converting carbon monoxide (CO) and carbon dioxide (CO2) into methane (CH4) and water vapor. This process not only reduces the need for traditional carbon sources but also allows for the recycling of carbon within the steel plant, thereby minimizing emissions.

Several companies, including Linde, Topsøe, Johnson Matthey, and Air Liquide, offer methanation technologies to produce synthetic natural gas. These technologies are seen as a mature and effective way to introduce hydrogen into the blast furnace, reducing the reliance on traditional carbon sources. The Topsøe Recycle Energy-Efficient Methanation Process (TREMP™), for instance, includes three fixed-bed methanation reactors and intermediate cooling, which helps in heat integration and the production of synthetic natural gas.

The integration of methanation with the blast furnace process has shown promising results in reducing CO2 emissions. By converting the top gas from the blast furnace into synthetic natural gas, the process not only reduces the need for natural gas purchases but also recycles the carbon within the steel plant. This approach is particularly beneficial for regions where natural gas is expensive or unavailable.

Japanese steelmaker JFE is one of the companies leading the way in this technology. JFE's "carbon recovery technology" integrates methanation into the blast furnace process, allowing for the recycling of CO2 and the production of carbon-neutral methane. This technology has the potential to reduce CO2 emissions by approximately 30% when deployed in an oxygen blast furnace (OBF). JFE plans to build a pilot-scale blast furnace at its East Japan plant to test this new process, with operations expected to begin in 2025.