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Caterpillar (CAT) to Showcase Hydrogen-Fueled CHP System
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Caterpillar Inc. (CAT - Free Report) announced a three-year project to demonstrate a hydrogen-fueled combined heat and power (CHP) system that will provide both electricity and heat simultaneously, increasing overall efficiency and reducing exhaust emissions. This is in sync with the company’s incessant focus on providing its customers with reliable, sustainable power solutions.
Caterpillar will collaborate with District Energy St. Paul, Minnesota, which provides energy to downtown Saint Paul and the adjacent West Side neighborhood. It distributes chilled water and hot water to customer buildings and single-family homes.
CAT will integrate its CHP system into District Energy St. Paul's electrical and thermal infrastructure, which will help test the system in real-world operating conditions. This will help Caterpillar to evaluate hydrogen fuel options for existing energy-efficient engines and explore more avenues to help customers meet their climate-related goals and objectives.
The project, supported and partially funded by the U.S. Department of Energy and backed by the National Renewable Energy Laboratory, is scheduled to start early next year. Caterpillar has more than three decades of experience with high-hydrogen fuel. The company currently offers a 1250 kW generator set capable of operating on 100% hydrogen, including fully renewable green hydrogen, on a designed-to-order basis. It also has commercially available power generation solutions from 400 kW to 4.5 MW, which can be configured to operate on natural gas blended with up to 25% hydrogen.
Owing to the growing awareness regarding the risks of climate change, organizations globally are fervently working toward a reduced-carbon future. Hydrogen is now being considered a promising alternative energy source to fossil fuels, given its abundance, versatility and zero emissions. The Hydrogen Council estimates that hydrogen could fulfill up to one-fifth of the global energy demand by 2050.
Caterpillar has a long-standing commitment to sustainability, boasting a history of sustainable innovation of more than 95 years. The company has been named on the Dow Jones Sustainability Index for 22 years in a row. It targets to reduce absolute greenhouse gas emissions from its operations by 30% from 2018 to 2030. It aims to make 100% of its new products through 2030 to be more sustainable than the previous ones. The new products will offer improved design for rebuild/remanufacturing, lower emissions, enhanced efficiency and reduced waste.
Apart from the focus on sustainability, Caterpillar continues to invest in digital capabilities, connecting assets and job sites, and developing the next generation of more productive and efficient products. The company plans to fund initiatives that drive long-term profitable growth focused on areas of expanded offerings and services and digital initiatives like e-commerce. The company is well-poised to deliver improved results this year, backed by its strong backlog levels and strong demand in its end markets.
Price Performance
Shares of Caterpillar have fallen 11.0% in a year compared with the industry’s decline of 12.8%.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have gained 13% in the past year.
Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings rose 4.2% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 4% in the past year.
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Caterpillar (CAT) to Showcase Hydrogen-Fueled CHP System
Caterpillar Inc. (CAT - Free Report) announced a three-year project to demonstrate a hydrogen-fueled combined heat and power (CHP) system that will provide both electricity and heat simultaneously, increasing overall efficiency and reducing exhaust emissions. This is in sync with the company’s incessant focus on providing its customers with reliable, sustainable power solutions.
Caterpillar will collaborate with District Energy St. Paul, Minnesota, which provides energy to downtown Saint Paul and the adjacent West Side neighborhood. It distributes chilled water and hot water to customer buildings and single-family homes.
CAT will integrate its CHP system into District Energy St. Paul's electrical and thermal infrastructure, which will help test the system in real-world operating conditions. This will help Caterpillar to evaluate hydrogen fuel options for existing energy-efficient engines and explore more avenues to help customers meet their climate-related goals and objectives.
The project, supported and partially funded by the U.S. Department of Energy and backed by the National Renewable Energy Laboratory, is scheduled to start early next year. Caterpillar has more than three decades of experience with high-hydrogen fuel. The company currently offers a 1250 kW generator set capable of operating on 100% hydrogen, including fully renewable green hydrogen, on a designed-to-order basis. It also has commercially available power generation solutions from 400 kW to 4.5 MW, which can be configured to operate on natural gas blended with up to 25% hydrogen.
Owing to the growing awareness regarding the risks of climate change, organizations globally are fervently working toward a reduced-carbon future. Hydrogen is now being considered a promising alternative energy source to fossil fuels, given its abundance, versatility and zero emissions. The Hydrogen Council estimates that hydrogen could fulfill up to one-fifth of the global energy demand by 2050.
Caterpillar has a long-standing commitment to sustainability, boasting a history of sustainable innovation of more than 95 years. The company has been named on the Dow Jones Sustainability Index for 22 years in a row. It targets to reduce absolute greenhouse gas emissions from its operations by 30% from 2018 to 2030. It aims to make 100% of its new products through 2030 to be more sustainable than the previous ones. The new products will offer improved design for rebuild/remanufacturing, lower emissions, enhanced efficiency and reduced waste.
Apart from the focus on sustainability, Caterpillar continues to invest in digital capabilities, connecting assets and job sites, and developing the next generation of more productive and efficient products. The company plans to fund initiatives that drive long-term profitable growth focused on areas of expanded offerings and services and digital initiatives like e-commerce. The company is well-poised to deliver improved results this year, backed by its strong backlog levels and strong demand in its end markets.
Price Performance
Shares of Caterpillar have fallen 11.0% in a year compared with the industry’s decline of 12.8%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Caterpillar currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector are Graphic Packaging Holding Company (GPK - Free Report) , Myers Industries (MYE - Free Report) and Packaging Corporation of America (PKG - Free Report) . While GPK and MYE flaunt a Zacks Rank #1 (Strong Buy), PKG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Graphic Packaging has an estimated earnings growth rate of 86.8% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 7.6%.
Graphic Packaging pulled off a trailing four-quarter earnings surprise of 7.2%, on average. The company’s shares have appreciated 14.8% in a year.
Myers Industries has an expected earnings growth rate of 67% for 2022. The Zacks Consensus Estimate for the current year’s earnings has moved up 27% in the past 60 days.
MYE has a trailing four-quarter earnings surprise of 20.1%, on average. Myers Industries’ shares have gained 13% in the past year.
Packaging Corporation has an expected earnings growth rate of 16.2% for 2022. The Zacks Consensus Estimate for the current year’s earnings rose 4.2% in the past 60 days.
PKG has a trailing four-quarter earnings surprise of 19.6%, on average. Packaging Corporation’s shares have gained 4% in the past year.