Petrobras S.A. PBR, the Brazilian state-owned energy company, has signed a Protocol of Intent with Companhia Siderúrgica Nacional (“CSN”) and CSN Inova Soluções to develop a low-carbon hydrogen plant in Brazil. The agreement, which marks the beginning of a business partnership between the companies, is aimed at building a commercially viable low-carbon hydrogen plant in Paraná, Brazil.

Low-carbon hydrogen can be used for various industrial processes and as a clean fuel. It can help reduce the carbon footprint of several industrial processes. The hydrogen would be obtained by electrolysis, which involves splitting water into hydrogen and oxygen using electricity. The electricity used in the process shall be obtained from renewable sources. However, Petrobras has not specified the renewable energy sources that would be used to power the production process.

Both CSN and Petrobras aim to decarbonize their operations through this initiative. Notably, Petrobras' move aligns with its Strategic Plan 2050 and Business Plan 2025-2029. Signing the Protocol of Intent shows PBR’s commitment to lowering its carbon emissions from operations and increasing the availability of sustainable products. Petrobras’ Strategic Plan 2050 and Business Plan 2025-2029 mention the company’s long-term vision to become a leader in driving fair energy transition.

PBR’s Zacks Rank and Key Picks

Currently, PBR carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are FuelCell Energy FCEL, TechnipFMC plc FTI and Nine Energy Service NINE, 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.

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.

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a high of $14.7 million in the third quarter of 2024, indicating an 11.1% increase from the previous year’s level. This growing backlog ensures strong revenue growth for FTI.

Story Continues

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Petroleo Brasileiro S.A.- Petrobras (PBR):Free Stock Analysis Report

TechnipFMC plc (FTI):Free Stock Analysis Report

FuelCell Energy, Inc. (FCEL):Free Stock Analysis Report

Nine Energy Service, Inc. (NINE):Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

View Comments