Shell (SHEL) Ventures Invests in Value Group for CCUS
Shell plc’s SHEL corporate venture capital arm, Shell Ventures, invested in Value Group, a Dutch sustainability company that develops and deploys carbon capture, utilization and storage (CCUS) technologies. The investment will support Value Group's efforts to accelerate the development and commercialization of its CCUS solutions for the maritime sector.
The Importance of Investment
Shell is committed to becoming a net-zero emissions business by 2050. CCUS is a key part of Shell's strategy to achieve this goal, as it can help capture and store CO2 emissions from industrial sources. The maritime sector is a major source of CO2 emissions, and Shell's investment in Value Group is a significant step toward decarbonizing shipping.
Value Group's Filtree System
Value Group's flagship product is the Filtree System, a prefabricated gas cleaning system that removes sulfur and particulate matter from ship exhaust. The system also includes an onboard carbon capture module that can capture up to 90% of the CO2 emitted by the ship.
Benefits of the Investment
The investment from Shell Ventures will help Value Group to scale up the production of the Filtree System and bring it to market more quickly. Shell Ventures will also provide Value Group with access to its expertise and network in the maritime industry.
Shell's Commitment to CCUS
The investment in Value Group is part of Shell's broader commitment to reducing its emissions and supporting the energy transition. Shell is aiming to become a net-zero emissions business by 2050, and CCUS is a key part of its strategy to achieve this goal.
In conclusion, this investment in Value Group underscores Shell's dedication to investing in innovative technologies capable of mitigating emissions. It also demonstrates Shell's confidence in the potential of CCUS to play a pivotal role in facilitating the transition toward cleaner and more sustainable energy sources.
Zacks Rank and Key Picks
Currently, SHEL carries a Zacks Rank #3 (Hold).
Some better-ranked stocks for investors interested in the energy sector are CVR Energy CVI, sporting a Zacks Rank #1 (Strong Buy), and Evolution Petroleum EPM and Archrock AROC, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Energy (CVI) is valued at around $3.50 billion. In the past year, its shares have risen 5.3%.
CVI currently pays a dividend of $2 per share, or 5.75% on an annual basis. Its payout ratio currently sits at 30% of earnings.
Evolution Petroleum is worth approximately $295.76 million. EPM currently pays a dividend of 48 cents per share, or 5.40% on an annual basis.
The company currently has a forward P/E ratio of 8.23. In comparison, its industry has an average forward P/E of 17.70, which means EPM is trading at a discount to the group.
Archrock is valued at around $2.03 billion. It delivered an average earnings surprise of 15.08% for the last four quarters and its current dividend yield is 4.79%.
Archrock is a provider of natural gas contract compression services and aftermarket services of compression equipment.
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CVR Energy Inc. (CVI) : Free Stock Analysis Report
Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report
Archrock, Inc. (AROC) : Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
