Ecolab Inc. ECL recently entered into an agreement with Clearway Energy Group to support its 419-megawatt (MW) wind farm, Mesquite Star, in Fisher County, Texas (through a virtual power purchase deal). For investors’ notice, construction of the Mesquite Star wind farm will begin in the first half of 2019.
Per the agreement, Ecolab will support the construction of 100 MW new renewable electricity capacity within the Mesquite Star wind farm. This will cover the company’s annual domestic energy use completely.
Following the news, shares of this Zacks Rank #4 (Sell) company decreased 2.7%.
About Mesquite Star Project
Clearway’s Mesquite Star renewable energy project helps utility and corporate purchasers achieve goals pertaining to renewable energy. It is one of more than 60 utility-scale wind and solar projects in the United States.
Ecolab to Benefit From Mesquite Star Project
Per management at Ecolab, the renewable electricity generated from the Mesquite Star wind farm will help the company reduce its greenhouse gas emissions 25% by 2020 versus a 2015 baseline.
Markedly, Ecolab’s virtual power purchase agreement with Clearway is part of a broader trend among corporate buyers. In the last year, VPPA contracts for 5 GW of renewable energy have been signed in the United States.
Other Recent Developments
Earlier this month, Ecolab acquired Holchem Group Limited — a U.K.-based supplier of hygiene, and cleaning products and services for the food and beverage as well as foodservice and hospitality industries. However, the buyout is yet to be cleared by the Competition and Markets Authority, which is expected to take place by early 2019.
Ecolab and Holchem Group will operate separately until the acquisition is approved. The financial terms of the deal have been kept under wraps. On completion of the acquisition, management at Ecolab is looking forward to better serve the customers of the food and beverage, and foodservice industry in Ireland, the United Kingdom and entire Europe.
Last month, Ecolab announced that it will acquire Bioquell PLC to enhance offerings for life sciences and healthcare environments. The transaction is expected to close by the first quarter of 2019.
Stocks to Consider
Some better-ranked stocks in the broader medical space are Veeva Systems Inc. VEEV, Integer Holdings Corporation ITGR and OPKO Health, Inc. OPK.
Veeva Systems’ long-term earnings growth rate is projected at 19.5%. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Integer projects earnings growth rate of 31.2% for the fourth quarter. It currently carries a Zacks Rank #2 (Buy).
OPKO Health’s long-term earnings growth rate is projected at 12%. The stock presently sports a Zacks Rank of 1.
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