KBR's H2ACT Chosen for World's Largest Ammonia Cracking Plant
KBR, Inc. KBR secured a license and engineering design contract from Hanwha Impact Corporation. The deal marks the selection of KBR's leading H2ACT technology for the world's first commercial ammonia cracking unit in Daesan, Republic of Korea.
Per the contract, KBR will provide technology licensing and proprietary engineering design for the unit to produce more than 200 metric tons of clean hydrogen daily for use as fuel.
Ammonia cracking, the process of converting transported ammonia back into hydrogen, is crucial in global decarbonization efforts. In this announcement about the largest ammonia cracking plant, clean hydrogen will support a planned power plant in Daesan. This marks a significant step toward large-scale sustainable hydrogen utilization.
Focus on Ammonia Technology
KBR, a global leader in ammonia technology since 1943, has licensed and designed more than 250 ammonia plants worldwide. This move signifies a crucial step towards its decarbonization objectives and aligns with Korea's national sustainability goals. KBR's innovative ammonia cracking technology, H2ACT, offers a dependable, comprehensive solution for large-scale, efficient, and sustainable hydrogen production.
KBR has been working on multiple initiatives and contracts to expand its low-carbon ammonia offerings for energy transition. On Jul 19, 2023, KBR unveiled Air Liquide's Autothermal Reforming (ATR) technology solution, allowing its customers to produce low-carbon ammonia at a large scale. In April, it won a deal to provide the K-GreeN technology for Atlas Agro AG’s planned investment in a series of green nitrate plants. The technology was chosen by Avina Clean Hydrogen for its green ammonia project in the United States. Earlier in February, KBR secured a K-GreeN contract from Enaex, S.A., for the HyEx green ammonia project in Chile, South America.
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Shares of the company rose 19.3% in the past six months, outperforming the industry’s 9.1% gain. The demand for the company’s technologies across ammonia for food production, olefins for non-single-use plastics, refining for product diversification and greener solutions to meet tighter environmental standards has been strong. A strategic shift to IP-enabled maintenance is also gaining traction and KBR’s advisory portfolio continues to see increasing activity, particularly in energy transition.
Zacks Rank & Key Picks
KBR currently sports a Zacks Rank #3 (Hold).
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