Fluor’s Econamine FG PlusSM Carbon Capture Technology Selected to Reduce CO2 Emissions at Chevron Facility

Rhea-AI Summary

Fluor Corporation (NYSE: FLR) has signed a license agreement with Chevron New Energies to use its proprietary Econamine FG PlusSM carbon capture technology to reduce carbon dioxide (CO2) emissions at Chevron’s Eastridge Cogeneration facility in Kern County, California. The technology is expected to reduce emissions by approximately 95%. This agreement was recognized in the fourth quarter. Fluor will develop a process design package, supply proprietary equipment, and provide technical support services as part of the licensing agreement.

Environmental Technology Expert

The licensing agreement between Fluor Corporation and Chevron New Energies to implement the Econamine FG PlusSM carbon capture technology is a significant step in the energy industry's efforts to mitigate environmental impact. The technology's capability to potentially reduce CO2 emissions by 95% at Chevron’s Eastridge Cogeneration facility is noteworthy, given the increasing regulatory pressures and societal demands for cleaner energy production.

Carbon capture and storage (CCS) technologies are crucial for the transition to a low-carbon economy, especially for industries that are hard-to-decarbonize. The Econamine FG PlusSM system, which specifically targets the removal of CO2 from industrial flue gases, could represent a best-in-class solution, offering a competitive advantage in terms of efficiency and operational costs compared to other CCS technologies. This could lead to increased demand for Fluor's technology, potentially impacting Fluor's future market share and revenue streams in the CCS segment.

Energy Sector Financial Analyst

From a financial perspective, the undisclosed license award recognized by Fluor in the fourth quarter could signal positive future earnings implications for the company. This agreement may contribute to Fluor's revenue diversification, reducing reliance on traditional energy sector projects. Investors should monitor the deployment and performance of this technology as successful implementation could lead to further agreements with other companies seeking to reduce their carbon footprint, thereby creating a new revenue stream for Fluor.

For Chevron, investing in this technology may improve its environmental, social and governance (ESG) metrics, which are increasingly important to investors. A successful reduction in emissions could enhance Chevron's reputation and potentially provide a buffer against carbon taxes and other regulatory costs associated with greenhouse gas emissions. However, the capital expenditure and operational costs associated with the implementation of the Econamine FG PlusSM technology should be weighed against the anticipated long-term savings and regulatory benefits.

Sustainability Analyst

The adoption of Fluor's Econamine FG PlusSM technology by Chevron represents a proactive approach to sustainability within the energy sector. The anticipated reduction of CO2 emissions aligns with global climate goals and supports the Paris Agreement's objective to limit global warming. For stakeholders, this move can be seen as a commitment to responsible energy generation and an investment in the longevity of the company's operations in a carbon-constrained world.

However, the broader impact of such technology depends on its scalability and adaptability across various industries and geographies. The performance of the Econamine FG PlusSM system in real-world conditions will be critical to assess its viability as a large-scale solution to CO2 emissions. Furthermore, the long-term effectiveness of CCS as a climate strategy is dependent on the development of infrastructure for the safe transport and storage of captured carbon, which presents additional challenges and opportunities for innovation within the sector.

Technology expected to reduce emissions by approximately 95%

IRVING, Texas--(BUSINESS WIRE)-- Fluor Corporation (NYSE: FLR) announced today that Chevron New Energies has signed a license agreement with Fluor to use its proprietary Econamine FG Plus^SM carbon capture technology to reduce carbon dioxide (CO₂) emissions at Chevron’s Eastridge Cogeneration facility in Kern County, California. Fluor recognized the undisclosed license award in the fourth quarter.

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Fluor’s Econamine FG Plus carbon capture technology expected to reduce CO2 emissions at Chevron facility by approximately 95% (Photo: Business Wire)

“We are pleased to help Chevron achieve their CO₂ reduction goals through the use of our carbon capture technology,” said Jim Breuer, Group President of Fluor’s Energy Solutions business segment. “We are seeing significant activity across the globe in carbon capture and are pleased to employ our Econamine FG Plus technology to this important project.”

When installed, Fluor’s carbon capture solution is expected to reduce the Eastridge facility’s carbon emissions by approximately 95%. As part of the licensing agreement, Fluor will develop a process design package, supply proprietary equipment and provide technical support services throughout various stages of the project.

About Fluor Corporation

Fluor Corporation (NYSE: FLR) is building a better world by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s 40,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of $13.7 billion in 2022 and is ranked 303 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement and construction services for more than 110 years. For more information, please visit www.fluor.com or follow Fluor on Twitter, LinkedIn, Facebook and YouTube.

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Media Relations

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Jason Landkamer

Investor Relations

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Source: Fluor Corporation

What is the purpose of the license agreement between Fluor Corporation and Chevron New Energies?

The purpose of the license agreement is to use Fluor's proprietary carbon capture technology to reduce CO2 emissions at Chevron’s Eastridge Cogeneration facility by approximately 95%.

Where is the Eastridge Cogeneration facility located?

The Eastridge Cogeneration facility is located in Kern County, California.

What is the ticker symbol for Fluor Corporation?

The ticker symbol for Fluor Corporation is FLR.

What services will Fluor provide as part of the licensing agreement?

Fluor will develop a process design package, supply proprietary equipment, and provide technical support services throughout various stages of the project as part of the licensing agreement.