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ArcelorMittal (MT) Invests $30M in LanzaTech via XCarb Fund
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ArcelorMittal S.A. (MT - Free Report) recently announced that it has invested $30 million in carbon recycling company LanzaTech, using its XCarb innovation fund. This fund was launched in March 2021, and this is the fourth investment made through the fund.
ArcelorMittal’s partnership with LanzaTech began in 2015 when it first announced plans to utilize the latter’s carbon capture and re-use the technology at its plant in Ghent, Belgium. The investment further expands this relationship with LanzaTech.
The company’s €180 million investment in its flagship carbon capture and re-use technology project, the Carbalyst plant, is under construction. The commissioning of the same is projected before the end of the next year. It is also referred to as the Steelanol project and funding are procured from various sources such as European Union’s Horizon 2020 program and the European Investment Bank.
The plant is expected to reduce ArcelorMittal Ghent’s CO2e emissions by 125,000 tons annually by utilizing LanzaTech’s gas fermentation technology, which captures carbon-rich waste gases from the steelmaking process and transforms them into sustainable fuels and chemicals.
It will also manufacture 80 million liters of bio-ethanol each year, which can be blended with traditional gasoline and used as a low-carbon alternative fuel for the transport sector.
LanzaTech is also developing technology to convert captured emissions into a number of other chemical building blocks to produce useful materials, such as textiles, rubber and packaging.
Shares of ArcelorMittal have increased 26% in the past year compared with a 30% rise of the industry.
Image Source: Zacks Investment Research
ArcelorMittal, in its last earnings call, stated that it expects global apparent steel consumption, excluding China, to increase 12-13% in 2021.
Factoring in softening real demand in China, ArcelorMittal now envisions a modest contraction in apparent steel demand in China in 2021. The company also expects that the impact on ex-China steel markets will be limited as strict production constraints are likely to lead to lower Chinese net exports in the second half of 2021 compared with the first half.
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Celanese Corporation (CE - Free Report) , The Chemours Company (CC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Celanese has an expected earnings growth rate of 139.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 8.7% upward in the past 60 days.
Celanese beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 12.7%, on average. The stock has increased around 20.6% in a year. CE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Chemours has an expected earnings growth rate of 105.1% for the current year. The Zacks Consensus Estimate for the current year has been revised 10% upward in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in all of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. CC has increased around 16.7% over a year. Chemours currently carries a Zacks Rank #2.
AdvanSix has a projected earnings growth rate of 194.5% for the current year. ASIX's consensus estimate for the current year has been revised 5.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 110% in a year. AdvanSix currently sports a Zacks Rank #1.
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ArcelorMittal (MT) Invests $30M in LanzaTech via XCarb Fund
ArcelorMittal S.A. (MT - Free Report) recently announced that it has invested $30 million in carbon recycling company LanzaTech, using its XCarb innovation fund. This fund was launched in March 2021, and this is the fourth investment made through the fund.
ArcelorMittal’s partnership with LanzaTech began in 2015 when it first announced plans to utilize the latter’s carbon capture and re-use the technology at its plant in Ghent, Belgium. The investment further expands this relationship with LanzaTech.
The company’s €180 million investment in its flagship carbon capture and re-use technology project, the Carbalyst plant, is under construction. The commissioning of the same is projected before the end of the next year. It is also referred to as the Steelanol project and funding are procured from various sources such as European Union’s Horizon 2020 program and the European Investment Bank.
The plant is expected to reduce ArcelorMittal Ghent’s CO2e emissions by 125,000 tons annually by utilizing LanzaTech’s gas fermentation technology, which captures carbon-rich waste gases from the steelmaking process and transforms them into sustainable fuels and chemicals.
It will also manufacture 80 million liters of bio-ethanol each year, which can be blended with traditional gasoline and used as a low-carbon alternative fuel for the transport sector.
LanzaTech is also developing technology to convert captured emissions into a number of other chemical building blocks to produce useful materials, such as textiles, rubber and packaging.
Shares of ArcelorMittal have increased 26% in the past year compared with a 30% rise of the industry.
ArcelorMittal, in its last earnings call, stated that it expects global apparent steel consumption, excluding China, to increase 12-13% in 2021.
Factoring in softening real demand in China, ArcelorMittal now envisions a modest contraction in apparent steel demand in China in 2021. The company also expects that the impact on ex-China steel markets will be limited as strict production constraints are likely to lead to lower Chinese net exports in the second half of 2021 compared with the first half.
ArcelorMittal Price and Consensus
ArcelorMittal price-consensus-chart | ArcelorMittal Quote
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Celanese Corporation (CE - Free Report) , The Chemours Company (CC - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Celanese has an expected earnings growth rate of 139.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 8.7% upward in the past 60 days.
Celanese beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 12.7%, on average. The stock has increased around 20.6% in a year. CE currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Chemours has an expected earnings growth rate of 105.1% for the current year. The Zacks Consensus Estimate for the current year has been revised 10% upward in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in all of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. CC has increased around 16.7% over a year. Chemours currently carries a Zacks Rank #2.
AdvanSix has a projected earnings growth rate of 194.5% for the current year. ASIX's consensus estimate for the current year has been revised 5.9% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has rallied around 110% in a year. AdvanSix currently sports a Zacks Rank #1.