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BP Inks Deal with Virent and JM for Bioforming Technology

Zacks Equity Research

BP plc BP has inked an agreement with Virent Inc. and Johnson Matthey (“JM”), which is related to progress of the commercialization of Virent’s Bioforming process for production of bio-paraxylene (PX).

Bio-paraxylene is a vital raw material used for the production of renewable polyester. Virent’s Bioforming technology, which is being developed in collaboration with JM, generates drop-in reformate product from renewable sources that can be used to yield renewable fuels and can also be processed into lower carbon intensive bio-PX, the feedstock for bio-purified terephthalic acid (PTA), using existing technologies.

Per the agreement, the parties will work together to commercialize the BioForming technology. BP will offer technical resources and will have exclusive rights to discussas it will be the sole manufacturer of bio-PX using Virent’s technology.

Renewable bio-PX will enable BP’s existing petrochemicals plants to produce a distinctive product in line with commitment toward a low carbon future. In the petrochemicals business PTAir product line, a low carbon PTA product has also been introduced.

BP believes in low carbon emission and is working toward making the environment cleaner. The company has partnered with various parties to make operations more environment friendly.

BP also tries to create value over the long-term by finding ways to grow inorganically. For example, BP’s transaction in the Norwegian North Sea to form AkerBP as well as the merger of BP and Bridas assets to create Argentina’s largest private integrated oil and gas company — Pan American Energy Group or PAEG — emphasize the company’s commitment to boost shareholders’ value.

Zacks Rank & Key Picks

BP carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector can opt for some better-ranked stocks as given below.

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San Antonio, TX-based NuStar Energy L.P. NS is a midstream energy company. For 2019, the bottom line, which has witnessed three upside revision in the past 30 days, is expected to surge 64.2% year over year. The company currently holds a Zacks Rank #2 (Buy).

Madrid, Spain-based Repsol, S.A. REPYY is an integrated energy company. The bottom line for 2019 is expected to increase 13.7% year over year. The company delivered average positive earnings surprise of 9% in the trailing four quarters. The stock currently has a Zacks Rank #2.

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