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KBR's K-GreeN Technology Chosen by OCIOR Energy in India

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KBR, Inc. (KBR - Free Report) has inked a deal with OCIOR Energy to provide its K-GreeN technology for the latter’s plant located in Odisha's Gopalpur region, India. This marks the 10th KBR-licensed green ammonia plant globally and the first in India.

Per the deal, KBR’s Sustainable Technology Solutions unit will provide a technology license, proprietary engineering design, equipment, and catalyst solutions to OCIOR for a green ammonia plant with a capacity of 600 metric tons per day. KBR will help OCIOR's plant to achieve the optimal levelized cost of ammonia production.

KBR’s Low-Carbon Ammonia Offerings Bode Well

Since 1943, KBR has licensed, engineered and constructed more than 260 grassroot ammonia plants worldwide, capturing approximately 50% of the market share of licensed capacity. The determination to lower emissions, achieve product diversification and energy efficiency, and develop more sustainable technologies and solutions has been driving KBR’s performance.

The demand for the company’s technologies across ammonia for food production, olefins for non-single-use plastics, refining for product diversification and greener solutions to meet tighter environmental standards has been strong. A strategic shift to IP-enabled maintenance is also gaining traction, and KBR’s advisory portfolio continues to see increasing activity, particularly in the energy transition.

KBR has been gaining from the rising global importance of national security, energy security, energy transition and climate change. It has been benefiting from high-end and differentiated government business work, strong margin performance, technology and consulting services.

KBR's determination to reduce emissions, diversify products, improve energy efficiency and implement more sustainable technologies and solutions has been driving its performance.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of this Zacks Rank #3 (Hold) company have gained 15.5% so far this year compared with the Zacks Engineering - R and D Services industry’s 18.5% growth. Although shares of the company have underperformed the industry this year, the ongoing contract wins are likely to boost its prospects in the forthcoming quarters. KBR’s earnings estimate for 2024 reflects 10.3% year-over-year growth on a 9.2% increase in revenues.

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