SLB SLB, a leading oilfield services company, has entered into an agreement with Linde plc LIN, the largest producer of industrial gases globally, and Aramco, Saudi Arabia’s majority state-owned oil company, to develop a carbon capture and storage project. The carbon capture project, based in Jubail, Saudi Arabia, is expected to have the capacity to capture and store up to 9 million metric tons of carbon dioxide per year.
The first phase of the project is anticipated to be concluded by the end of 2027. The carbon dioxide captured in the process will be transported via pipelines and stored underground in a saline aquifer sink.
Aramco shall hold 60% ownership of the project while SLB and Linde will own 20% each. The three companies had signed a preliminary agreement concerning the carbon capture project in November 2022.
The project is aimed at helping Aramco realize its net zero emissions target by 2050 by reducing emissions from its operations. Saudi Arabia has set a target to reach net zero emissions by 2060. These initiatives align with the global climate efforts to bring down emissions from various industrial operations.
Zacks Rank and Key Picks
Currently, SLB carries a Zacks Rank #4 (Sell) while LIN holds a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Smart Sand, Inc. SND and FuelCell Energy FCEL, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, providing a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
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