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KBR to Study for Green Hydrogen Economy in Trinidad & Tobago

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KBR, Inc. (KBR - Free Report) has won a contract to support Trinidad and Tobago to meet carbon reduction and sustainability targets, together with National Energy Corporation of Trinidad and Tobago Limited (National Energy) and other key stakeholders.

Per the deal, KBR will develop strategies for maximizing opportunities to establish a green hydrogen market and undertaking supply and demand dynamics for green hydrogen generation, transportation, and end-use applications. Also, it will identify areas for the development of the existing infrastructure and policy, focusing more on innovative approaches to advance sustainable growth of this sector.

KBR’s study will help National Energy develop a low-carbon economy and a roadmap to Net Zero through technological innovation. Also, the study will assess the potential for green hydrogen production, repurposing the existing facilities for low-carbon hydrogen and recommendations for a technical implementation plan.

KBR’s Sustainable Technology Solutions’ president, Jay Ibrahim, said, "The recent COP26 Summit brought into focus the threat of climate change on island nations. The opportunity to help the country meet its carbon reduction and sustainability targets firmly aligns with KBR’s commitment of driving innovative solutions to support sustainability."

Sustainable Technology Business a Boon for KBR

The Sustainable Technology Solutions segment — comprising 20.3% of the company’s total revenues — includes Energy Solutions, Technology Solutions and Non-Strategic Business segments. This segment is anchored by innovative, proprietary process technologies.

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KBR’s best-in-class technologies have been designing and building end-to-end, sophisticated digitization solutions as well as services for clients across the world. This includes high-fidelity operator training simulators, reliability-based maintenance solutions, dynamic simulation solutions, advanced process control solutions and more. These notable digitized technologies and solutions allow companies to increase efficiency and productivity, reduce costs as well as create opportunities for generating higher revenues and profitability.

Over the past several years, KBR has been offering proprietary sustainable technologies and professional services to support decarbonization. Also, it is actively involved in the hydrogen value chain as both a technology provider and an advisor by providing differentiated project delivery solutions.

Overall, it has been driving growth by focusing on lowering carbon emissions, product diversification, energy efficiency, and more sustainable technologies as well as solutions. Demand for the company’s technologies across ammonia for food production, olefins for non-single-use plastics, and in refining for product diversification and more green solutions to meet tighter environmental standards has been strong. A strategic shift to IP-enabled maintenance is gaining traction and KBR continues to see increasing activity across the advisory portfolio, particularly in energy transition.

KBR’s solid prospects are backed by continuous contract wins, strong project execution, backlog level, and potential government as well as technology businesses. KBR’s shares have gained 49.7% in the year-to-date period, outperforming the Zacks Engineering - R and D Services industry’s 30.3% rally.

Zacks Rank

Currently, KBR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Meritage Homes has gained 42.1% YTD. Earnings are expected to grow 74.4% in 2021 and 22.2% in the next.

Toll Brothers, Inc. (TOL - Free Report) : This luxury homebuilder’s strategy of broadening the product lines, price points and geographies will drive growth going forward. The company has been strategically adding more affordable luxury communities in view of the current demographic trends, and expanding footprint and customer base. TOL has been expanding geographically via selective acquisitions.

Toll Brothers currently sports a Zacks Rank #1 and has gained 64.9% YTD. Earnings are expected to grow 46.3% in fiscal 2022.