Energy Stocks Fluctuate; Air Products to Supply Green Hydrogen to TotalEnergies
Key Ideas
- Energy stocks were mixed on Friday afternoon, with some indices declining while others saw slight increases.
- Air Products and Chemicals signed a 15-year deal to supply 70,000 tons of green hydrogen annually starting in 2030 to TotalEnergies' refineries, reducing 700,000 tons of CO2 emissions.
- This move towards green hydrogen signifies a positive step towards environmental sustainability and reduced carbon footprint in the energy sector.
- While Air Products shares surged by 3.8%, TotalEnergies saw a slight decline of 1.4% following the announcement.
On a late Friday afternoon, energy stocks were experiencing fluctuations, with the NYSE Energy Sector Index and the Energy Select Sector SPDR Fund (XLE) showing a decrease, while the Philadelphia Oil Service Sector index saw a slight increase. The Dow Jones US Utilities index, however, was on a downward trend. Oil prices were also affected, with West Texas Intermediate crude oil and Brent crude contract both dropping in value. In contrast, Henry Hub natural gas futures witnessed a significant jump. A notable development in the corporate world was Air Products and Chemicals securing a deal to supply 70,000 tons of green hydrogen annually from 2030 to TotalEnergies' Northern European refineries for the next 15 years. This agreement aims to reduce a substantial amount of CO2 emissions, signaling a positive shift towards sustainability in the energy industry. Following this announcement, Air Products shares saw a rise of 3.8%, while TotalEnergies experienced a slight decrease of 1.4%. The move towards green hydrogen underlines a growing emphasis on eco-friendly practices and emission reduction in the energy sector.