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Caterpillar (CAT), Chevron to Pilot Hydrogen-Powered Locomotive
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Caterpillar Inc.’s (CAT - Free Report) arm, Progress Rail, BNSF Railway Company, and Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (CVX - Free Report) have teamed up to develop a hydrogen fuel-cell locomotive demonstration project. This will help confirm the viability of hydrogen fuel as an alternative to traditional fuels for line-haul rail. This collaboration will advance hydrogen technology across the industry as it has the potential to be a lower-carbon solution compared to diesel fuel while being cost competitive.
All the parties have entered a memorandum of understanding (MOU) to demonstrate a locomotive powered by hydrogen fuel cells. Progress Rail will design and build a prototype hydrogen fuel cell locomotive for line-haul and/or other types of rail service. Chevron will develop the fueling concept and infrastructure to support the use of the locomotive. The prototype hydrogen fuel cell locomotive will then be demonstrated on BNSF’s lines for a mutually agreed upon period of time. However, the demonstration project is subject to customary closing conditions, including regulatory approval.
In September this year, Caterpillar and Chevron had announced their collaboration to explore the feasibility, performance and commercial viability of hydrogen as a fuel source in both transportation and stationary power applications. Owing to the growing awareness regarding the risks of climate change, organizations globally are fervently working toward a reduced-carbon future. Hydrogen is now being considered as a promising alternative energy source to fossil fuels given its abundance, versatility and zero emissions. The Hydrogen Council estimates that hydrogen could fulfill 20% of global energy demand by 2050.
Earlier this year, Chevron announced the formation of Chevron New Energies, which will be focused on commercialization opportunities in hydrogen, carbon capture, and offsets and support of ongoing growth in biofuels. It has been pursuing opportunities to make hydrogen the fuel choice for the heavy-duty transportation and industrial sectors, which contribute heavily to global carbon emissions. CVX has set a target to grow hydrogen production to 150,000 tons per year to supply industrial, power and heavy-duty transport customers.
This initiative is in sync with Caterpillar’s commitment to invest in new products, technologies and services that will support customers during their energy transition to a lower-carbon future. Caterpillar has a long-standing commitment toward sustainability, boasting a history of sustainable innovation of more than 95 years. The company has been named on the Dow Jones Sustainability Index for 21 years in a row. It has set a target to reduce absolute greenhouse gas emissions from its operations by 30% from 2018 to 2030. It aims to make 100% of its new products through 2030 to be more sustainable than the previous generation.
Apart from focus on sustainability, Caterpillar continues to fund initiatives that drive long-term profitable growth focused on areas of expanded offerings and services and digital initiatives like e-commerce. The company is well-poised to deliver improved results this year backed by its strong backlog levels and ongoing strength in its end markets. Savings from its restructuring actions will boost margins and help negate the impact of input cost inflation.
Price Performance
Image Source: Zacks Investment Research
Shares of Caterpillar have gained 10.8% so far this year compared with the industry’s rally of 11.2%.
SiteOne Landscape has an estimated earnings growth rate of around 77.2% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 14%.
So far this year, the company’s shares have increased 47%. SiteOne Landscape has a trailing four-quarter earnings surprise of 130.9%, on average.
A. O. Smith has an expected earnings growth rate of around 35% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
A. O. Smith’s shares have surged 49% year-to-date. The company has a trailing four-quarter earnings surprise of 16.8%, on average.
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Caterpillar (CAT), Chevron to Pilot Hydrogen-Powered Locomotive
Caterpillar Inc.’s (CAT - Free Report) arm, Progress Rail, BNSF Railway Company, and Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (CVX - Free Report) have teamed up to develop a hydrogen fuel-cell locomotive demonstration project. This will help confirm the viability of hydrogen fuel as an alternative to traditional fuels for line-haul rail. This collaboration will advance hydrogen technology across the industry as it has the potential to be a lower-carbon solution compared to diesel fuel while being cost competitive.
All the parties have entered a memorandum of understanding (MOU) to demonstrate a locomotive powered by hydrogen fuel cells. Progress Rail will design and build a prototype hydrogen fuel cell locomotive for line-haul and/or other types of rail service. Chevron will develop the fueling concept and infrastructure to support the use of the locomotive. The prototype hydrogen fuel cell locomotive will then be demonstrated on BNSF’s lines for a mutually agreed upon period of time. However, the demonstration project is subject to customary closing conditions, including regulatory approval.
In September this year, Caterpillar and Chevron had announced their collaboration to explore the feasibility, performance and commercial viability of hydrogen as a fuel source in both transportation and stationary power applications. Owing to the growing awareness regarding the risks of climate change, organizations globally are fervently working toward a reduced-carbon future. Hydrogen is now being considered as a promising alternative energy source to fossil fuels given its abundance, versatility and zero emissions. The Hydrogen Council estimates that hydrogen could fulfill 20% of global energy demand by 2050.
Earlier this year, Chevron announced the formation of Chevron New Energies, which will be focused on commercialization opportunities in hydrogen, carbon capture, and offsets and support of ongoing growth in biofuels. It has been pursuing opportunities to make hydrogen the fuel choice for the heavy-duty transportation and industrial sectors, which contribute heavily to global carbon emissions. CVX has set a target to grow hydrogen production to 150,000 tons per year to supply industrial, power and heavy-duty transport customers.
This initiative is in sync with Caterpillar’s commitment to invest in new products, technologies and services that will support customers during their energy transition to a lower-carbon future. Caterpillar has a long-standing commitment toward sustainability, boasting a history of sustainable innovation of more than 95 years. The company has been named on the Dow Jones Sustainability Index for 21 years in a row. It has set a target to reduce absolute greenhouse gas emissions from its operations by 30% from 2018 to 2030. It aims to make 100% of its new products through 2030 to be more sustainable than the previous generation.
Apart from focus on sustainability, Caterpillar continues to fund initiatives that drive long-term profitable growth focused on areas of expanded offerings and services and digital initiatives like e-commerce. The company is well-poised to deliver improved results this year backed by its strong backlog levels and ongoing strength in its end markets. Savings from its restructuring actions will boost margins and help negate the impact of input cost inflation.
Price Performance
Shares of Caterpillar have gained 10.8% so far this year compared with the industry’s rally of 11.2%.
Zacks Rank & a Stock to Consider
Caterpillar currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include SiteOne Landscape Supply (SITE - Free Report) and A. O. Smith Corporation (AOS - Free Report) . While SITE flaunts a Zacks Rank #1 (Strong Buy), AOS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SiteOne Landscape has an estimated earnings growth rate of around 77.2% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 14%.
So far this year, the company’s shares have increased 47%. SiteOne Landscape has a trailing four-quarter earnings surprise of 130.9%, on average.
A. O. Smith has an expected earnings growth rate of around 35% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
A. O. Smith’s shares have surged 49% year-to-date. The company has a trailing four-quarter earnings surprise of 16.8%, on average.