Honeywell UOP, an operating unit of Honeywell International Inc. (HON - Free Report) , strengthened its leading position in the market as a renewable diesel producer when one of its existing clients decided to use its indigenous technology to boost production capacity. In addition to incremental revenues, the strategic move will improve the environmental fuel footprint through the usage of relatively less harmful bio-diesel.
Honeywell UOP's Ecofining process technology, developed in unison with Eni SpA (E - Free Report) , will be utilized by the Diamond Green Diesel facility in Norco, LA, to augment its renewable diesel production capacity from 10,000 barrels per day to 18,000 by the second quarter of 2018. This largest commercial advanced bio-fuel facility in the U.S. is a joint venture between Darling Ingredients Inc. (DAR - Free Report) and Diamond Alternative Energy LLC, which is a subsidiary of Valero Energy Corporation (VLO - Free Report) .
The facility has been using this technology to convert inedible oils and other waste feedstock to produce Honeywell Green Diesel, a high-quality renewable fuel that reduces greenhouse gas emissions by 80% compared to diesel produced from petroleum. This bio-diesel has a lower cetane value of 80 compared with cetane value of 40–60 in petroleum diesel. Cetane values indicate how quickly and completely diesel fuel will burn. Also, higher-cetane diesel fuel provides better engine performance with lesser emissions.
With such state-of-the-art products, Honeywell UOP aims to gain a competitive edge over its rivals and augment its revenues. Honeywell UOP is a premier supplier of process technology, catalysts, adsorbents, equipment, and consulting services to the petroleum refining, petrochemical, and gas processing industries across the globe. It forms part of Honeywell's Performance Materials and Technologies strategic business group.
Based in Morris Township, NJ, Honeywell manufactures a wide range of aerospace products and services, including control, sensing and security technologies for buildings, homes and industry. It also produces turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions for homes and business.
The company has outperformed the Diversified Operations industry in the last three months with an average return of 8.0% compared with just 0.5% gain for the latter. We remain impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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