KBR (NYSE: KBR) and Johnson Matthey (JM), announced today that they have signed an alliance agreement to license a groundbreaking ammonia-methanol co-production process that combines their market-leading ammonia and methanol technologies.
The co-production process is based on well-proven technologies utilizing KBR's proprietary PURIFIER ammonia process and JM's methanol process. Both KBR's ammonia technology and JM's methanol technology showcase a long history, deep experience, continuous improvements and leading-edge performance. Since the 1960s, KBR has licensed, engineered or constructed more than 244 ammonia plants worldwide. JM has supplied the methanol industry with leading technology and catalysts for over 45 years and has licensed over 100 grassroots methanol plants during this period.
Ammonia is primarily used in the production of urea for fertilizer, with methanol and its derivative products primarily used to produce formaldehyde, acrylic plastic, synthetic fabrics, adhesives, paints, and other products in pharmaceuticals and agrichemicals. The co-production of methanol and ammonia in a single plant offers many advantages including reduced capital expenditures (CAPEX) and lower operating expenses (OPEX). The KBR and JM co-production process makes the most of the possible synergies between the two processes, maximizing the savings in CAPEX and OPEX while offering the highest levels of safety, flexibility and reliability.
'I am excited to announce the alliance agreement combining market leading technologies from KBR and JM into a new offering for our clients,' said Doug Kelly, KBR President, Technology Solutions. 'KBR's ammonia technology is known for its lowest energy consumption resulting in reduced carbon footprint, highest reliability and safety and outstanding financial performance.'
'Methanol and ammonia hold great promise for continued energy and fuels transition to a greener world. This strategic agreement is a powerful combination that provides our customers a comprehensive solution for enhanced asset optimization, cost savings and reduced environmental impact,' said John Gordon, Managing Director for Johnson Matthey. 'Our partnership with KBR takes ammonia-methanol production to the next step with a single point license that delivers innovative operational agility to meet ever changing market demand.'
KBR is a global provider of differentiated professional services and solutions across the asset and program life cycle within the government services and technology sectors. KBR employs approximately 28,000 people worldwide with customers in more than 80 countries and operations in 40 countries.
KBR is proud to work with its customers across the globe to provide technology, value-added services, and long- term operations and maintenance services to ensure consistent delivery with predictable results.
About Johnson Matthey
Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, we improve the performance, function and safety of our customers' products and in 2020 we received the London Stock Exchange's Green Economy Mark, given to companies that derive more than 50% of revenues from environmental solutions. Our science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet's natural resources. Today more than 14,000 Johnson Matthey professionals collaborate with our network of customers and partners to make a real difference to the world around us.
Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the significant adverse impacts on economic and market conditions of the COVID-19 pandemic; the company's ability to respond to the challenges and business disruption presented by the COVID-19 pandemic; the recent dislocation of the global energy market; the company's ability to realize cost savings and efficiencies relating to the streamlining of its Energy Solutions business; the company's ability to manage its liquidity; the company's ability to continue to generate anticipated levels of revenue, profits and cash flow from operations during the COVID-19 pandemic and any resulting economic downturn; the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; the scope and enforceability of the company's indemnities from its former parent; changes in capital spending by the company's customers, including as a result of the COVID-19 pandemic; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; increased competition for employees; the ability to successfully complete and integrate acquisitions and operations of joint ventures, including joint ventures that are not controlled by the company.
KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
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