In a Thursday interview with CNBC’s Jim Cramer, Cummins CEO Jennifer Rumsey explained why hydrogen plays a role in the company’s strategy.
“We need hydrogen, hydrogen has to be a part of the answer,” she said. “And the reason is, you’ve got renewable energy that we need to convert into some kind of fuel, transport, and have it available when we need it.”
Cummins, which manufactures engines and power-generation products, aims to reduce carbon emissions, and hydrogen is an alternative energy source that has the potential to do so. Rumsey explained that hydrogen can provide a way to store renewable energy and transport it to where fuel is needed.
Rumsey added that Cummins also needs “hydrogen-based solutions” for certain scenarios.
For example, batteries can be too expensive and too heavy for use by heavy-duty trucks traveling across country, she said, and in response Cummins is investing in hydrogen engines for its HELM platform, which stands for higher efficiency, lower emissions and multiple fuels.
“We’re investing today in hydrogen engines, so we’ll be able to burn hydrogen in these HELM engine platforms, and then also in fuel cells,” Rumsey said. “I think this is going to be a little bit farther out; the reality is, you know, hydrogen is going to take some time to develop, but we’re advancing those technologies.”
Cummins topped Wall Street’s expectations when it reported earnings on Thursday, posting record revenue in the second quarter. The stock hit a new 52-week high on Thursday and was up 4.9% by close.
