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Eastman (EMN) & Hydrogenious Partner to Serve Green Hydrogen

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Eastman Chemical Company (EMN - Free Report) and Hydrogenious LOHC Technologies, a leading player in the liquid organic hydrogen carrier (LOHC) industry, are partnering to ease out and better secure the storage and transportation of sustainable hydrogen, besides making it more affordable for the fast-growing clean energy market.

An LOHC specialty product is produced at Eastman's facility in Marl, Germany. The product empowers the company to provide for the increasing needs of hydrogen transportation. It features reusability even after several cycles, easy logistics and safe storage. The fluid can also be reprocessed to enable a considerable reduction in greenhouse gas emission, thereby contributing to a truly circular economy.

Eastman noted that it is optimistic about the partnership, which will strengthen its ability to cater to the global liquid organic hydrogen carrier demand. Its extensive industry experience in fluid supply for solar renewable energy projects, the know-how of manufacturing and logistics as well as technical service expertise in industrial fluids positions it well to partner with Hydrogenious.

Hydrogenious said that collaborating with a giant like Eastman is a vital step in green hydrogen storage as the future energy carrier. The partnership aims to focus on optimizing the carrier medium by making space for reprocessing.

The collaboration makes an important mark in the energy space as European policymakers lay out targets, strategies and funding to develop sustainable hydrogen for the de-carbonization of energy-intensive sectors of the global economy.

Shares of Eastman have grown 50.9% in a year compared with the industry’s rise of 36.3%. The estimated earnings growth rate for the company for the current year is pegged at 41.1%.

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In its last-quarter earnings call, the company said that it expects continued momentum in the second quarter as it is gaining from innovation, strong market recovery and lower operating costs from its operations transformation program. It expects adjusted earnings per share between $8.25 and $8.75 for 2021. It also anticipates free cash flow to reach $1.1 billion in the year.

Zacks Rank & Other Stocks to Consider

Currently, Eastman carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Orion Engineered Carbons S.A (OEC - Free Report) , Avient Corporation (AVNT - Free Report) and Cabot Corporation (CBT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Orion has a projected earnings growth rate of 79.8% for the current year. The company’s shares have surged 65.3% over a year.

Avient has a projected earnings growth rate of 64.2% for the current year. The company’s shares have appreciated 80.3% over a year.

Cabot has a projected earnings growth rate of 137.5% for the current year. The company’s shares have jumped 46.9% over a year.

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