KBR Green Ammonia Technology Selected by Lotte Chemical Corporation for H2biscus Project in Malaysia
- KBR's K-GreeN® technology selected for Lotte Chemical's green ammonia project
- KBR to provide technology license and proprietary engineering design for the project
- The project will produce 800 KTA of green ammonia from hydropower, supporting global net zero targets
- KBR's leadership in ammonia technology and innovation in the ammonia market for decades
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Insights
The selection of KBR's K-GreeN® technology by the consortium for Lotte Chemical's H2biscus green ammonia project signifies an important step in the energy sector's transition towards sustainable practices. Green ammonia, produced from renewable energy sources like hydropower, is gaining traction as a carbon-free fuel and a medium for hydrogen storage and transportation. This project, with an output of 800 KTA (kilo tonnes per annum), represents a substantial scale-up in green ammonia production capabilities.
From an energy transition perspective, the adoption of green ammonia is critical in reducing carbon emissions in industries such as agriculture and shipping, where it can be used as a direct fuel or for producing hydrogen. The involvement of significant players like Lotte Chemical and KNOC indicates a strong commitment to net-zero targets and showcases the role of innovative technologies in achieving these goals. The long-term implications for the energy market include potential shifts in trade flows, with countries rich in renewable energy resources becoming exporters of green ammonia to those with high energy demands but limited renewable capacity.
The announcement by KBR to provide its K-GreeN® technology to Lotte Chemical's green ammonia project could have a positive impact on KBR's financial performance. Licensing technology and proprietary engineering design are high-margin segments for companies like KBR. The project's size and the involvement of significant industry players suggest a sizable contract value, which could positively affect KBR's revenue streams and earnings projections.
Investors might view this development as a strategic move that positions KBR favorably within the green technology space, potentially leading to further contracts and partnerships. However, the capital expenditure required for such projects and the timeline for revenue recognition are critical factors to consider. The market will also be looking at the operational execution of this contract and any follow-on opportunities it may generate for KBR.
The green ammonia project aligns with the growing trend of sustainable investments. As a zero-carbon solution, K-GreeN® technology meets the increasing demand for environmental, social and governance (ESG) compliant investments. The project's success could serve as a catalyst for more ESG-focused funds to consider KBR and similar companies within their investment universe.
For stakeholders, including investors and policymakers, the project's emphasis on renewable energy integration into chemical production is a positive development. It demonstrates the viability of large-scale sustainable projects and could pave the way for further advancements in the sector. Additionally, the project could benefit local economies through job creation and infrastructure development, contributing to the broader sustainable development goals.
Under the terms of the contract, KBR will provide technology license and proprietary engineering design to Lotte Chemical for its green ammonia project that will produce 800 KTA of green ammonia from hydropower.
"We are pleased to work with Lotte Chemical and support their energy transition objectives with our zero-carbon K-GreeN® technology," said Doug Kelly, KBR President, Technology. "KBR is a leader in advancing clean hydrogen technologies and solutions, and green ammonia is a key enabler to achieving global net zero targets. Our green ammonia solutions and complementary technologies such as H2ACT make KBR the preferred technology licensors for major energy transition projects around the world."
KBR is a world leader in ammonia technology and has been at the forefront of innovation in the ammonia market for decades. Since 1943, KBR has licensed, engineered, or constructed more than 250 grassroot ammonia plants worldwide.
About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 34,000 people performing diverse, complex and mission-critical roles in 33 countries.
KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
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Forward Looking Statements
The statements in this press release that are not historical statements, including statements regarding future demand for the company's technologies, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond the company's control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks, uncertainties and assumptions include, but are not limited to, those set forth in the company's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks and other
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SOURCE KBR, Inc.
FAQ
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