KBR's Market-Leading ROSE Technology Selected by Zhejiang Petroleum for the Largest SDA Unit in China

Rhea-AI Summary

KBR (NYSE: KBR) has secured a contract to provide its ROSE® supercritical Solvent De-Asphalting (SDA) technology to Zhejiang Petroleum & Chemical Co. (ZPC), a subsidiary of Rongsheng Petrochemical Co. in China. The agreement includes technology licensing and proprietary engineering design for what will be the largest SDA unit in China.

KBR's ROSE technology is an energy-efficient process for bottom-of-the-barrel processing, designed to improve refiners' carbon footprint and upgrade residue conversion for higher profitability. With this contract, KBR reinforces its position as a global leader in SDA technology, boasting an installed base of 72 ROSE units worldwide with a combined licensed capacity of nearly 1.66 million barrels per day.

Positive

• Secured contract for ROSE technology with Zhejiang Petroleum, operator of China's largest refinery
• Project will be the largest SDA unit in China, showcasing KBR's market leadership
• ROSE technology improves refiners' profitability and operational sustainability
• KBR has the largest installed base of SDA technology globally
• Company's SDA technology has a combined licensed capacity of 1.66 million barrels per day

Negative

• None.

Insights

Technology Expert

KBR's ROSE technology selection for China's largest SDA unit marks a significant milestone in the refining industry. This energy-efficient process addresses important challenges in bottom-of-the-barrel processing, potentially revolutionizing residue conversion for refineries globally. The technology's focus on safe start-up and reliable performance could set new industry standards, particularly in enhancing operational sustainability.

With an impressive installed base of 72 units worldwide, KBR's dominance in SDA technology is evident. This contract with ZPC, operating China's largest refinery, could further solidify KBR's market leadership. The potential for improved profitability and reduced carbon footprint makes this technology highly attractive for refiners facing increasing environmental pressures and profit margin challenges.

Financial Analyst

This contract win is a positive indicator for KBR's financial outlook. While specific financial terms aren't disclosed, securing the largest SDA unit project in China suggests a substantial revenue boost for KBR's Sustainable Technology Solutions segment. The company's market-leading position in SDA technology, with 1.66 million barrels per day of licensed capacity, indicates a strong, recurring revenue stream from licensing and engineering services.

Investors should note the potential for long-term growth as global refineries seek to upgrade their residue conversion capabilities. KBR's centennial celebration in refining solutions further underscores its industry expertise and longevity, factors that could contribute to investor confidence and potentially support stock valuation.

Environmental Impact Analyst

KBR's ROSE technology presents a promising solution for refineries aiming to reduce their environmental impact. The emphasis on energy efficiency and improved carbon footprint aligns with global sustainability goals, potentially positioning KBR as a key player in green refining technologies. This could lead to increased demand for KBR's solutions as refineries worldwide face stricter environmental regulations.

However, it's important to consider that while this technology improves efficiency, it still operates within the fossil fuel industry. Investors should monitor how KBR balances its traditional offerings with the increasing push for renewable energy solutions. The company's ability to adapt its technologies for more sustainable practices could be a critical factor in its long-term success and market perception.

HOUSTON, Sept. 9, 2024 /PRNewswire/ -- KBR (NYSE: KBR) announced today that it has been awarded a contract for its ROSE^® supercritical Solvent De-Asphalting (SDA) technology from Zhejiang Petroleum & Chemical Co. Ltd. (ZPC), a subsidiary of Rongsheng Petrochemical Co. Ltd. in China.

Under the terms of the contract, KBR will provide technology licensing and proprietary engineering design to ZPC, the operator of China's largest refinery.

"We are looking forward to working with ZPC on this unit, which will be the largest SDA unit in China deploying KBR's energy-efficient ROSE process," said Jay Ibrahim, KBR President, Sustainable Technology Solutions. "ROSE is an innovative supercritical extraction technology, globally recognized for its energy-efficient approach to bottom-of-the-barrel processing. This relatively simple process is designed for safe start-up and reliable performance, significantly improving the carbon footprint for refiners. Our solution is intended to enable ZPC to upgrade its residue conversion for higher profitability and operational sustainability."

KBR is a global leader in SDA technology with the largest installed base and has been involved in the licensing, design, engineering, and commissioning of 72 ROSE units worldwide with a combined licensed capacity of nearly 1.66 million barrels per day. In 2024, KBR is celebrating 100 years of offering refining and clean fuel solutions.

About KBR

We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 36,000 people worldwide with customers in more than 80 countries and operations in over 30 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.

Visit www.kbr.com

Forward Looking Statements

The statements in this press release that are not historical statements, including statements regarding future design and technological performance, 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 U.S. Securities and Exchange Commission filings, which discuss some of the important risks, uncertainties and assumptions that the company has identified that may affect its business, results of operations and financial condition. Due to such risks, uncertainties and assumptions, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

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SOURCE KBR, Inc.

FAQ

What technology has KBR been contracted to provide to Zhejiang Petroleum?

KBR has been contracted to provide its ROSE® supercritical Solvent De-Asphalting (SDA) technology to Zhejiang Petroleum & Chemical Co. (ZPC) in China.

How many ROSE units has KBR licensed worldwide as of September 2024?

As of September 2024, KBR has been involved in the licensing, design, engineering, and commissioning of 72 ROSE units worldwide.

What is the combined licensed capacity of KBR's ROSE technology units?

The combined licensed capacity of KBR's ROSE technology units is nearly 1.66 million barrels per day.

How does KBR's ROSE technology benefit refiners?

KBR's ROSE technology is designed to improve refiners' carbon footprint, upgrade residue conversion for higher profitability, and enhance operational sustainability.