Monsanto Wins New Contract – Analyst Blog
Source: http://www.zacks.com/stock/news/26448/Monsanto+Wins+New+Contract+-+Analyst+BlogPosted on Monday, October 26th, 2009 | In Investing Lessons, Stocks to Watch
Monsanto Company (MON) has signed a long-term supply contract with Air Products (APD), the leading global hydrogen provider. According to the contract, Air Products will build a new world-scale hydrogen production plant to be located at Monsanto’s Luling, Louisiana, Roundup facility. The new hydrogen plant is scheduled to be on-stream in Jan 2012.
Air Products will build a steam methane reformer (SMR) producing over 100 million standard cubic feet per day (MMSCFD) of hydrogen. The SMR will be connected to Air Products’ East Gulf Coast pipeline network, which supplies refineries with hydrogen needed to make cleaner burning transportation fuels, in addition to meeting the hydrogen needs of the local petrochemical industry. In addition, the facility will produce additional hydrogen via a clean-up of a hydrogen-rich off-gas feed coming from Monsanto. Monsanto will use steam from Air Products’ SMR process to benefit its Roundup production plant.
This agreement is a win-win for Monsanto as it will help reduce natural gas usage to make steam, which will in turn help serve its farmer customers in a more environmentally sustainable manner.
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holding and large-scale farmers to maximize production from their land while conserving more of our world’s natural resources such as water and energy. The company’s direct competitor is Syngenta AG (SYT).
Read the full analyst report on “MON”
Read the full analyst report on “APD”
Read the full analyst report on “SYT”
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