BP plc ( BP Quick Quote BP - Free Report) signed a memorandum of understanding with CEMEX, S.A.B. de C.V. ( CX Quick Quote CX - Free Report) to facilitate the advancement of the latter’s 2050 ambition of delivering net-zero carbon dioxide concrete globally as part of the plans to achieve net-zero emissions in cement production.
The oil and gas industry is under immense pressure to reduce emissions as investors are becoming strategic drivers of decarbonization action. Hence, energy companies are implementing strategies to reduce emissions not only from their operations but also from other fossil-fuel intensive industries such as cement manufacturing. Notably, the cement industry is one of the most difficult industries to decarbonize as cement production is a major source of global CO
Thus, BP and cement giant CEMEX decided to seek solutions to decarbonize the process of cement production and transportation. Potential solutions include the use of low-carbon power and transport, improving the energy efficiency of cement production, carbon offsets, and carbon capture and storage to reduce greenhouse gas emissions. Moreover, the companies will develop urbanization solutions to decarbonize cities.
CEMEX believes that the world will remain heavily dependent on concrete even though cement making is highly energy-consuming. This is because concrete is the primary building material for residential and commercial constructions, and there is no alternative for its features, strength and resilience. Hence, it will remain crucial in a low-carbon economy.
CEMEX is playing a major role in decarbonizing the global cement industry with an accelerating rate of progress in all regions, including Mexico and Latin America. Notably, the collaboration with CEMEX will help speed up the decarbonization of the industry and progress towards BP’s long-term strategy of becoming a net-zero emission business by 2050 or sooner.
Company Profile & Price Performance
Headquartered in London, U.K., BP is a fully integrated energy company, with a strong focus on renewable energy.
Shares of the company have outperformed the
industry in the past six months. Its stock has gained 38.7% compared with the industry’s 32.8% growth.
Zacks Rank & Stocks to Consider
The company currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are
China Petroleum & Chemical Corporation ( SNP Quick Quote SNP - Free Report) and Royal Dutch Shell Plc ( RDS.A Quick Quote RDS.A - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Over the past 60 days, the Zacks Consensus Estimate for China Petroleum’s 2021 earnings has been raised by 23.9%.
Shell’s earnings for 2021 are expected to increase 17.3% year over year.
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