Liquefaction and cryogenic equipment manufacturer Chart Industries has acquired a 5% stake in Transform Materials for $25 million. Transform Materials makes use of microwave plasma to turn natural gas into acetylene and hydrogen.
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Chart Industries’ (GTLS) CEO and President, Jill Evanko, said, “This investment in and commercial agreement with Transform Materials is yet another step toward expanding our customers’ options in our high growth clean-energy markets, in particular hydrogen.”
Evanko added, “Perhaps most impactful about Transform’s patented process technology is that there is no oxygen involved in the reaction, so therefore no carbon dioxide (“CO2”) is generated – the very definition of clean.” (See Chart Industries stock analysis on TipRanks)
Additionally, the two companies also signed a Memorandum of Understanding (MOU) for commercial collaboration and supply of equipment from Chart Industries to Transform Materials. This provides opportunities for Chart Industries to expand its equipment footprint across geographies and customers.
Witnessing multiple commercial pipeline opportunities, Transform Materials plans to start construction of two or three plants within the next 12 months.
David Soane Ph.D., Chairman of Transform Materials, said, “An important benefit of our technology is that it repurposes the carbon that methane-a potent greenhouse gas-contains, so that it does not enter the atmosphere. We saw immediately how chart’s process chemicals and hydrogen technologies can help us deliver clean, high-purity hydrogen and acetylene to our customers at scale.”
On March 30, Piper Sandler analyst Ian Macpherson reiterated a Buy rating on the stock with a $175 price target (22.9% upside potential). Macpherson commented that Chart Industries “is likely cheaper than it looks” and it still benefits from “synchronous tailwinds across end markets.”
Turning to the rest of the Street, the stock has a Strong Buy consensus rating alongside an average analyst price target of $169.45 (19% upside potential), based on 11 unanimous Buys. Shares have surged about 401.9% over the past year.
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