KBR, Inc. (KBR Quick QuoteKBR - Free Report) has inked a deal with Fortescue — a leading green energy, metals and technology company — to provide its K-GreeN technology for a Holmaneset green energy project in Norway.

Per the deal, KBR’s Sustainable Technology Solutions business will provide a technology license, proprietary engineering design and FEED support services for the 675 metric ton per day grassroots green ammonia plant.

KBR aims to be a significant contributor to the development of the green energy value chain and decarbonization of hard-to-abate industries.

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Shares of this Zacks Rank #3 (Hold) company have gained 2.9% in a month versus the Zacks Engineering - R and D Services industry’s 0.6% fall. KBR’s earnings estimate for 2024 reflects 10% year-over-year growth on 8.5% increase in revenues.

KBR’s Low-Carbon Ammonia Offerings Bode Well

Since 1943, KBR has licensed, engineered and constructed more than 250 grassroot ammonia plants worldwide, capturing approximately 50% of the market share of licensed capacity. The determination to lower emissions, achieve product diversification and energy efficiency, and develop more sustainable technologies and solutions has been driving KBR’s performance.

To expand its low-carbon ammonia offerings for energy transition, KBR has been working on multiple contracts. Recently, its Purifier ammonia technology was selected to assist Wuhuan Engineering Co. Ltd. in the expansion of El Nasr Company’s Intermediate Chemicals' (NCIC) fertilizer complex in Egypt.

In January, its blue ammonia technology won a large, commercial-scale clean ammonia production and export project in the U.S. Gulf Coast. This project, provided by Tokyo-based INPEX Corporation and Oklahoma City-based LSB Industries, is designed to capture carbon while maximizing yield.

The demand for the company’s technologies across ammonia for food production, olefins for non-single-use plastics, refining for product diversification and greener solutions to meet tighter environmental standards has been strong. A strategic shift to IP-enabled maintenance is also gaining traction, and KBR’s advisory portfolio continues to see increasing activity, particularly in the energy transition.

KBR has been gaining from the rising global importance of national security, energy security, energy transition and climate change. It has been benefiting from high-end and differentiated government business work, strong margin performance, technology and consulting services.

KBR's determination to reduce emissions, diversify products, improve energy efficiency and implement more sustainable technologies and solutions has been driving its performance.

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