Because the CO2 was directly used in profitable oil production, NRG claimed that it also boosted their bottom line.SAN ANTONIO, Texas – bp and CarbonFree announce an agreement to collaborate on the development of carbon capture and utilization projects using CarbonFree’s Sk圜ycle TM technology. It captured CO2 waste from NRG’s coal power plant and sent it via pipes for enhanced oil recovery. In 2016, NRG’s Petra Nova system first came online. But their Petra Nova plant was built as a free market solution to CO2: they would use CO2 to extract oil. It is a classic carbon-intensive power company, selling electricity from oil, coal and gas. NRG Energy (NYSE: NRG) is a case study in the perils and profits of carbon capture. Keep a lookout for more state governments to require carbon offsets, that could make Fluor a hot topic in the near future. But even if such regulations don’t materialize, Fluor is still in a relatively safe position with its other revenue sources. That in turn would mean more awards for Fluor. If more governments follow California in requiring carbon offsets, that could mean more demand for schemes like Project Bison. But it could grow substantially if demand for carbon offsets increases.īecause Fluor’s carbon capture system doesn’t directly monetize the carbon, it is in many ways a bet on the regulatory environment. Carbon capture (part of their Energy Solutions segment) is just a small piece of that pie. But if such a strategy goes national it could be a boon to Project Bison and its backers. Fluor is a major construction company, with $13.7 billion in revenue and $427 million in earnings in FY 2022. Only California currently requires companies to participate in a cap-and-trade carbon market. Instead it hopes to sell carbon credits to other companies, getting them to pay it to sequester carbon. Unlike Fuel Cell Energy, Project Bison won’t directly make money by using CO2. Dubbed Project Bison, this complex will sequester the CO2 in deep saltwater aquifers beneath Wyoming. It was recently tapped by CarbonCapture (privately held) to help build a facility to remove CO2 directly from the air. If Fuel Cell Energy can meet these challenges, it can win big in the net zero future.įluor (NYSE: FLR) is an engineering and construction company making its own play in the carbon capture market. But its Advanced Technologies revenue shows growth and it has plenty of runway with its cash on hand. Fuel Cell Energy also needs to show it can turn a profit. However the CO2 still needs to be sequestered or it just gets released back into the atmosphere. If Fuel Cell Energy is right, then their technology can lead to net zero CO2 production when using methane as an energy source. However Advanced Technologies did show 10% growth from Q1 2022. Their total revenue was $37 million of which “Advanced Technologies” (which includes carbon capture) was $4.4 million. But the produced CO2 is in a state that makes it easier to sequester instead of releasing it into the atmosphere.įor Q1 of 2023, Fuel Cell Energy reported an operating loss of $22.4 million and cash and cash equivalents of $315 million. It’s important to realize that this process produces carbon dioxide just as much as it consumes it. That hydrogen is then used to produce electricity in fuel cells.īecause CO2 is a necessary ingredient, Fuel Cell Energy thinks its carbon capture process can be profitable. In order to obtain hydrogen, Fuel Cell Energy combines methane with CO2 at ultrahigh temperatures. While many of us learned that hydrogen and oxygen combine to produce water and energy, Fuel Cell Energy has an added twist for capturing carbon. So here’s three carbon capture stocks to keep on your radar.įuel Cell Energy (NASDAQ: FCEL) sells, leases, and maintains fuel cells for producing electricity. If the carbon capture industry proves its value, you’ll want to bet on the doers, not the talkers. By contrast, these are genuine carbon capture stocks that actually capture carbon. While many companies talk about carbon capture, very few actually do it. And that means understanding both the science and economics of carbon. Thus a successful carbon capture stock needs to have a strong vision of what they can accomplish profitably. But sequestration is difficult and CO2 has proven less useful than advocates had wished. Carbon capture is the process of removing CO2 and either using it for something else or sequestering it.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |