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Methanex (MEOH) to Lower Methanol Production's Emissions
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Methanex Corporation (MEOH - Free Report) and Entropy Inc., a leader in carbon capture and storage solutions, have agreed to invest in a preliminary front-end engineering and design study for carbon capture, utilization and sequestration (CCUS) deployment at its Medicine Hat, AB facility.
This partnership will use Entropy's proprietary modular post-combustion carbon capture technology and Methanex's manufacturing skills to utilize some of the captured CO2 to produce additional methanol, demonstrating the leadership of two Canadian companies in the low-carbon transition.
Following the final investment decision, Entropy will build and own the capture equipment adjacent to Methanex's facility, while Methanex will supply utilities, install tie-ins to its facility, and operate the capture equipment once commissioned.
The primary project highlights consist of the goal to capture about 400 tons of CO2 per day from emissions. The economic impact entails about C$100 million (roughly $75 million) investment, the majority of which will come from Entropy. The investment is expected to generate approximately 200 construction jobs and numerous permanent jobs once operational. A portion of the captured CO2 will be used as feedstock to manufacture an extra 50,000 tons of methanol per year, with the remainder safely stored underground.
Shares of Methanex have gained 21.7% over the past year against a 7.8% decline of its industry.
Image Source: Zacks Investment Research
MEOH expects production for 2024 to be roughly 7 million tons. The company's production projection for the year has been reduced principally due to the Geismar 3 start-up delay. This estimate is based on the midpoint of Chile and New Zealand production guidance, with G3 starting up in the third quarter and working at full rates in the fourth quarter, the restart of Egypt in the first half of February and all other plants functioning at full capacity. Quarterly production may vary depending on turnaround timing, gas supply, unforeseen outages and unanticipated events.
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 104.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.10 per share, indicating a year-over-year rise of 93%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.7%. The company's shares have rallied roughly 47.9% in the past year.
Kronos Worldwide currently carries a Zacks Rank #1. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have rallied around 13.4% in the past year.
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Methanex (MEOH) to Lower Methanol Production's Emissions
Methanex Corporation (MEOH - Free Report) and Entropy Inc., a leader in carbon capture and storage solutions, have agreed to invest in a preliminary front-end engineering and design study for carbon capture, utilization and sequestration (CCUS) deployment at its Medicine Hat, AB facility.
This partnership will use Entropy's proprietary modular post-combustion carbon capture technology and Methanex's manufacturing skills to utilize some of the captured CO2 to produce additional methanol, demonstrating the leadership of two Canadian companies in the low-carbon transition.
Following the final investment decision, Entropy will build and own the capture equipment adjacent to Methanex's facility, while Methanex will supply utilities, install tie-ins to its facility, and operate the capture equipment once commissioned.
The primary project highlights consist of the goal to capture about 400 tons of CO2 per day from emissions. The economic impact entails about C$100 million (roughly $75 million) investment, the majority of which will come from Entropy. The investment is expected to generate approximately 200 construction jobs and numerous permanent jobs once operational. A portion of the captured CO2 will be used as feedstock to manufacture an extra 50,000 tons of methanol per year, with the remainder safely stored underground.
Shares of Methanex have gained 21.7% over the past year against a 7.8% decline of its industry.
Image Source: Zacks Investment Research
MEOH expects production for 2024 to be roughly 7 million tons. The company's production projection for the year has been reduced principally due to the Geismar 3 start-up delay. This estimate is based on the midpoint of Chile and New Zealand production guidance, with G3 starting up in the third quarter and working at full rates in the fourth quarter, the restart of Egypt in the first half of February and all other plants functioning at full capacity. Quarterly production may vary depending on turnaround timing, gas supply, unforeseen outages and unanticipated events.
Methanex Corporation Price and Consensus
Methanex Corporation price-consensus-chart | Methanex Corporation Quote
Zacks Rank & Key Picks
MEOH currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Kronos Worldwide, Inc. (KRO - Free Report) .
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 104.5% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.10 per share, indicating a year-over-year rise of 93%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.7%. The company's shares have rallied roughly 47.9% in the past year.
Kronos Worldwide currently carries a Zacks Rank #1. KRO has a projected earnings growth rate of 297.7% for the current year. The company’s shares have rallied around 13.4% in the past year.