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LyondellBasell & Covestro Kick-Start Circular Steam Project

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LyondellBasell Industries N.V. (LYB - Free Report) and its joint venture partner Covestro kicked-off a large investment project at their Maasvlakte-Rotterdam site in Netherlands. The circular steam project converts water-based waste into energy through the incorporation of an innovative technology into the existing production plant.

The site’s production process will attain higher level of efficiency and sustainability through the installation, resulting in an overall annual reduction of ca. 140,000 metric tons CO2 emissions, 0.9 Petajoule of energy as well as avoiding the release of 11 million kilograms of salt residue into surface water.

The project will allow the companies to realize annual CO2 reduction and drive yearly energy savings which will help in attaining more sustainable production.
 
LyondellBasell and Covestro will construct an incinerator and a new bio plant, in which the production's waste will be treated and transformed into steam. The steam will be used as an energy source in the existing on-site production plant, making it a circular process.
 
This investment project is a key step towards achieving the Dutch government's target to reduce CO2 emissions by 49% in 2030.  Being an important emitter, the industry in Rotterdam plays a major role in this reduction.
 
Shares of LyondellBasell have rallied around 12.3% over a year, outperforming  the industry’s 0.7% rise.



LyondellBasell, during its second-quarter earnings call, stated that it is well-positioned to boost earnings over the upcoming quarters on the back of operational and market improvements in Refining, strong performance in Intermediates and Derivatives, the A. Schulman buyout and the start-up of Hyperzone HDPE (high-density polyethylene) plant in 2019. Earnings are expected to benefit from increased profits in its refinery, which is likely to be driven by the impact of new marine fuel regulations in second-half 2019.
 
LyondellBasell is executing its expansion projects to leverage the U.S. natural gas liquids advantage. The company’s expansion initiatives are expected to boost capacity and add to its earnings.

Zacks Rank and Stocks to Consider

LyondellBasell currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the basic materials space are Huntsman Corporation (HUN - Free Report) , Ingevity Corporation (NGVT - Free Report) and Air Products and Chemicals, Inc. (APD - Free Report) .

Huntsman has an expected long-term earnings growth rate of 8.5% and sports a Zacks Rank #1 (Strong Buy). The company’s shares have gained 2.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has an expected long-term earnings growth rate of 12% and flaunts a Zacks Rank #1. The company’s shares have rallied 68.9% in the past year.

Air Products has an expected long-term earnings growth rate of 16.2% and a Zacks Rank #2 (Buy). The stock has gained 10.8% in a year’s time.

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