The decision is likely to anger environmentalists, who have campaigned against burning imported wood pellets and have opposed the multi-billion-pound subsidies paid to Drax over the past 12 years. In addition, the government is expected within days to extend a lucrative bill-payer-backed subsidy scheme that last year paid Drax more than £600m to burn trees for electricity until the end of the decade. The project could add about £1.7bn to energy bills every year if the company acts on plans to fit all four of its biomass units with carbon capture technology, or a total of more than £43bn, according to Ember, a climate thinktank. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.Analysts have predicted that the revamp of the North Yorkshire site could be one of the most expensive energy projects in the world. On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. With a strong backlog and high financial flexibility, the company is positioned to make aggressive investments in emerging areas like carbon capture. Revenue is impressive, with Fluor reporting an order backlog of $26 billion across businesses in Q3 of 2023. So, Fluor will leverage on its technology to seek further growth in the carbon capture business. Notably, FLR’s technology has is already being used in 30 facilities over the last few decades. In the partnership, Fluor will be providing its proprietary Econamine FG Plus carbon capture technology. In June, Fluor and Carbfix announced a collaboration to pursue integrated carbon capture and storage ( CCS) solutions. With FLR stock trading at a forward price-earnings ratio of 14.4, it seems like a good accumulation opportunity. However, the energy solutions segment is involved in business that include carbon capture, renewable fuels, waste-to-energy, among others. Additionally, the company is pursuing cost-cutting measures, and it’s likely that EBITDA margin will improve coming quarters.įluor Corporation (NYSE: FLR) is an engineering, procurement, and construction company. With the solid-oxide fuel cell system having a wide application, losses could narrow on operating leverage. However, operating level loss was $103.7 million. In the next five years, I expect carbon capture segment to increasingly contribute to total revenue and potential revenue acceleration.įor Q3 2023, Bloom Energy reported healthy revenue growth of 36.9% to $400.3 million. Specific to carbon capture technology, the company “ captures and recycles hydrogen and water from the fuel cell exhaust and then separates emitted water vapor and CO2.” Further, the CO2 can be permanently sequestered in the ground or utilized in new applications. This includes hydrogen fuel cell, heat capture, carbon capture, among others. As an overview, Bloom Energy is leveraging on its fuel cell platform for various applications. Source: Sundry Photography / Shutterstockīloom Energy (NYSE: BE) is another interesting pick among carbon capture companies. This seems entirely likely with geographic diversification, making AKCCF stock a potentially massive value creator. Further, the company is targeting contracts to capture 10 million tons of CO2 per annum by 2025. Robust revenue growth is likely to sustain, with the company having an order backlog of 3 billion Norwegian krone. In fact, seven carbon capture units have already been delivered with 60,000 operating hours.įor Q3 of 2023, Aker Carbon reported revenue growth of 236% year over year ( YOY) to 440 million Norwegian krone. Further, Aker Carbon has a proven technology. Laser-focused business with positive industry tailwinds is likely to translate into robust growth. With strong potential for order inflows, I am bullish on AKCCF stock for multibagger returns from current levels.įirst, the company is a pure-play in carbon capture technology. Aker Carbon Capture ASA (AKCCF)Īker Carbon Capture (OTCMKTS: AKCCF) stock has been sideways in the last 12 months. Let’s discuss three names that look attractive. Over a five-year horizon, a few multibagger stocks are likely from the sector. The multi-fold growth in CO2 capture will translate into strong revenue and cash flow upside for the best carbon capture companies. Therefore, robust growth visibility exists even beyond the decade. It’s expected that by 2030, CO2 being captured will increase to 279 million tons, accounting for just 0.6% of today’s emissions. And, with growth potential, the amount of CO2 being captured today is 43 million tons.
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