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Equinor (EQNR), RWE to Boost Renewable Hydrogen in Europe
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Equinor ASA (EQNR - Free Report) entered an agreement with Germany-based electricity generation company, RWE, to develop offshore wind farms capable of producing green hydrogen.
Equinor and RWE will develop a renewable hydrogen production facility in Norway, which will export hydrogen to Germany. The facility would replace coal-fired power plants in Germany with gas-fired power plants ready to use hydrogen.
The agreement involves the construction of new gas power plants (“CCGTs”) and contributing to Germany’s coal phase-out program. The companies will manage the CCGTs, which will be initially powered by natural gas. It will then switch to hydrogen as fuel to fully run on the same when the volumes and technology are available.
The companies will also develop facilities in Norway to manufacture low-carbon hydrogen from natural gas through carbon capture and storage. More than 95% of the carbon dioxide will be absorbed and stored under the seabed offshore Norway.
The partnership would develop Norway into a key hydrogen supplier to Germany and Europe. The agreement represents an excellent opportunity to develop a hydrogen industry in Norway, where hydrogen can also be used as feedstock for domestic industries.
Beside this, Equinor and RWE are expected to collaborate on projects aimed at generating green hydrogen. They also plan to invest in flexible hydrogen-ready CCGT in Germany, with a total capacity of 3 gigawatts (“GW”) by 2030. The project will contribute to strengthening Europe’s security of supply and boost the production of low-carbon hydrogen.
Equinor has set out its strategy to enhance its transformation into a net-zero carbon emitter. The company aims to invest in clean hydrogen in Europe, with an initial 2 GW of low-carbon blue hydrogen production capacity in Norway by 2030. The company plans to eventually expand it to 10 GW by 2038.
Price Performance
Shares of Equinor have underperformed the industry in the past six months. The stock has declined 5.4% against the industry’s 19.7% growth.
Eni SpA (E - Free Report) , based in Rome, Italy, is among the leading integrated energy players in the world. Eni’s third-quarter adjusted earnings from continuing operations of $2.14 per American Depository Receipt beat the Zacks Consensus Estimate of $2.04.
Eni is expected to see an earnings rise of 171% in 2022. Eni raised its share buyback after profits surged amid rising oil and natural gas prices. The company increased its share buyback program to an annual total of €2.4 billion.
Phillips 66 (PSX - Free Report) is the leading player in each of its operations, including refining, chemicals and midstream, in terms of size, efficiency and strengths. PSX’s third-quarter 2022 adjusted earnings per share of $6.46 beat the Zacks Consensus Estimate of $4.98.
PSX is expected to see an earnings rise of 241.2% in 2022. Phillips 66’s board of directors authorized a $5-billion increase to its stock repurchase program, bringing the total share repurchases authorized since 2012 to $20 billion. This reflects Phillips 66’s strong focus on returning capital to stockholders.
MPLX LP (MPLX - Free Report) is a master limited partnership that provides a wide range of midstream energy services, including fuel distribution solutions. MPLX’s third-quarter earnings of 96 cents per unit beat the Zacks Consensus Estimate of 81 cents.
MPLX is expected to see an earnings rise of 35.3% in 2022. MPLX’s distribution per unit was 77.5 cents for the third quarter, indicating a 10% hike from the prior distribution of 70.5 cents.
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Equinor (EQNR), RWE to Boost Renewable Hydrogen in Europe
Equinor ASA (EQNR - Free Report) entered an agreement with Germany-based electricity generation company, RWE, to develop offshore wind farms capable of producing green hydrogen.
Equinor and RWE will develop a renewable hydrogen production facility in Norway, which will export hydrogen to Germany. The facility would replace coal-fired power plants in Germany with gas-fired power plants ready to use hydrogen.
The agreement involves the construction of new gas power plants (“CCGTs”) and contributing to Germany’s coal phase-out program. The companies will manage the CCGTs, which will be initially powered by natural gas. It will then switch to hydrogen as fuel to fully run on the same when the volumes and technology are available.
The companies will also develop facilities in Norway to manufacture low-carbon hydrogen from natural gas through carbon capture and storage. More than 95% of the carbon dioxide will be absorbed and stored under the seabed offshore Norway.
The partnership would develop Norway into a key hydrogen supplier to Germany and Europe. The agreement represents an excellent opportunity to develop a hydrogen industry in Norway, where hydrogen can also be used as feedstock for domestic industries.
Beside this, Equinor and RWE are expected to collaborate on projects aimed at generating green hydrogen. They also plan to invest in flexible hydrogen-ready CCGT in Germany, with a total capacity of 3 gigawatts (“GW”) by 2030. The project will contribute to strengthening Europe’s security of supply and boost the production of low-carbon hydrogen.
Equinor has set out its strategy to enhance its transformation into a net-zero carbon emitter. The company aims to invest in clean hydrogen in Europe, with an initial 2 GW of low-carbon blue hydrogen production capacity in Norway by 2030. The company plans to eventually expand it to 10 GW by 2038.
Price Performance
Shares of Equinor have underperformed the industry in the past six months. The stock has declined 5.4% against the industry’s 19.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Eni SpA (E - Free Report) , based in Rome, Italy, is among the leading integrated energy players in the world. Eni’s third-quarter adjusted earnings from continuing operations of $2.14 per American Depository Receipt beat the Zacks Consensus Estimate of $2.04.
Eni is expected to see an earnings rise of 171% in 2022. Eni raised its share buyback after profits surged amid rising oil and natural gas prices. The company increased its share buyback program to an annual total of €2.4 billion.
Phillips 66 (PSX - Free Report) is the leading player in each of its operations, including refining, chemicals and midstream, in terms of size, efficiency and strengths. PSX’s third-quarter 2022 adjusted earnings per share of $6.46 beat the Zacks Consensus Estimate of $4.98.
PSX is expected to see an earnings rise of 241.2% in 2022. Phillips 66’s board of directors authorized a $5-billion increase to its stock repurchase program, bringing the total share repurchases authorized since 2012 to $20 billion. This reflects Phillips 66’s strong focus on returning capital to stockholders.
MPLX LP (MPLX - Free Report) is a master limited partnership that provides a wide range of midstream energy services, including fuel distribution solutions. MPLX’s third-quarter earnings of 96 cents per unit beat the Zacks Consensus Estimate of 81 cents.
MPLX is expected to see an earnings rise of 35.3% in 2022. MPLX’s distribution per unit was 77.5 cents for the third quarter, indicating a 10% hike from the prior distribution of 70.5 cents.