America-based leading technology, engineering, procurement and construction company KBR, Inc. KBR has inked an alliance agreement with ‘green chemical technologies’ maker company, Exelus Inc. This deal will allow KBR to license the use of Exelus’ Solid Acid Catalyst (ExSact) for its Solid Acid Alkylation Technology (K-SAAT).
Following the announcement, the company’s share price rose 2.57% during the trading session on May 29.
Inside the Headlines
Per the agreement, KBR will provide engineering support to smoothly deliver the license packages to global clients. This alliance will empower KBR to offer groundbreaking technologies to its customers, thereby providing them with a competitive edge over peers.
K-SAAT, an extremely adaptable technology, is a colossal improvement over conventional liquid acid catalysts or other solid acid catalysts as it is capable of producing cheaper but superior-quality alkylate. KBR has mastered its K-SAAT technology by using Exelus’ unique solid acid catalyst ExSact.
With an ability to overcome ‘rapid deactivation limitations’, ExSact offers better alkylation, which improves performance of K-SAAT, thereby enhancing its appeal. Also, reflecting KBR’s commitment to provide innovative and sustainable solutions, K-SAAT produces minimal adverse environmental impact compared with traditional conventional liquid acid catalyst process technologies.
Bottom Line
With each passing day, environmental standards in both developing and developed countries are getting stricter and popularity for clean fuels is surging. In this regard, KBR is well positioned to meet the rising global demand by offering more environment-friendly fuels like alkylate.
Moreover, the company’s exclusive rights to license ExSact is particularly encouraging for its refining technology portfolio in the long run. We believe that based on the favorable industry trends, the company has strong investment opportunities in ammonia, refining, olefins & other chemicals. Furthermore, greater demand on part of clients to revamp existing facilities will act as a strong catalyst for growth in the company’s technology and consulting segment, going forward.
KBR currently carries a Zacks Rank #2 (Buy). Other well-ranked stocks in the industry include AECOM ACM, VSE Corp. VSEC and Capstone Turbine Corp. CPST. All three stocks carry the same Zacks Rank as KBR.
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