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LyondellBasell Industries N.V. LYB and Encavis Asset Management AG announced the signing of a power purchase agreement (PPA) to obtain 208 megawatts (MW) of renewable electricity generation capacity from the solar park in Bartow, Germany. This solar park will be among the largest of its kind in Germany.

Encavis AM will provide LyondellBasell with about 210 gigawatt-hours of solar power each year under this 12-year PPA. This is equivalent to the yearly electricity consumption of around 56,500 European houses beginning in 2025. With this latest PPA, the company will meet more than 90% of its overall renewable electricity goal.

PPAs play an important role in LYB’s attempts to minimize absolute scope 1 and 2 greenhouse gas emissions. This recent agreement will hasten the development and deployment of clean energy across multiple sectors in Germany. Approximately 15% of the company's 2020 baseline scope 1 and 2 greenhouse gas emissions are from power consumption. LyondellBasell has set an aim of procuring at least 50% of its electricity from renewable sources by 2030, based on 2020 obtained levels.

The solar park is located around 150 kilometers north of Berlin, where Encavis AM chose to maximize solar radiation and efficiency. The first phase's construction is scheduled to be finished in the summer of 2025. The park is anticipated to have a 260 MW overall electricity capacity.

Shares of LyondellBasell have gained 12.3% over the past year against a 4% decline of its industry.

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The company expects seasonally slow demand and economic uncertainty in the first quarter of 2024. Low ethane raw material costs continue to enhance North American Olefins & Polyolefins profits while regional demand improves modestly. LYB expects oxyfuels and refining margins to be within normal winter seasonal levels.

Seasonal demand is projected to improve in the spring and summer across worldwide markets. LYB aims to run Olefins & Polyolefins Americas assets at around 80%, and Olefins & Polyolefins EAI assets and Intermediates & Derivatives assets at roughly 75%.

LyondellBasell Industries N.V. Price and Consensus

Zacks Rank & Key Picks

LyondellBasell currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Carpenter Technology Corporation CRS and Ecolab Inc. ECL.

Denison Mines sports a Zacks Rank #1 (Strong Buy). DNN beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 300%. The company’s shares have soared 115.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology currently carries a Zacks Rank #1. CRS beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, with the average earnings surprise being 12.2%. The company’s shares have soared 71.9% in the past year.

The Zacks Consensus Estimate for Ecolab current-year earnings is pegged at $6.43 per share, indicating a year-over-year rise of 23.4%. ECL, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.7%. The company’s shares have rallied roughly 38.5% in the past year.

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