Chemical and advanced materials maker
) has announced its support for the Domestic Alternative Fuels
Act of 2013 introduced by Congressman Pete Olson to the U.S.
House of Representatives on May 15.
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The bill has been designed to amend section 211(o) of the Clean
Air Act to allow ethanol production from domestic natural gas and
help fuel blenders meet their obligations under the federal
Renewable Fuels Standard (RFS). It is co-sponsored by
Representative Jim Costa and has bipartisan support in the U.S.
House of Representatives.
While endorsing the legislation, Celanese emphasized the
necessity of an energy policy which uses every available source
of domestic energy. It further noted that the bill will promote
the use of the abundant natural resources available in the
country, free market economics and technical innovation to attain
America's critical energy security goals as well as fuel economic
growth and job creation.
Celanese has developed an advanced technology dubbed "TCX
Technology" that produces fuel and industrial-grade ethanol from
natural gas. This breakthrough technology is built on the
company's industry-leading acetyl platform and uses basic
hydrocarbons as feedstock instead of agricultural crops.
TCX is ideal for producing ethanol for the fuels market and
applications such as paints, coatings, inks and pharmaceuticals.
Other companies are also developing innovative and advanced
technologies for producing ethanol from non-biomass
Celanese is among the world's largest producers of acetyl
products as well as the leading global producer of
high-performance engineered polymers. The company's strong
presence in emerging markets will enable it to deliver
incremental earnings in 2013.
Celanese's first quarter results, reported on Apr 18, were a
mixed bag with adjusted earnings topping expectations while sales
missing the same. The company expects the challenging economic
conditions to persist throughout 2013. For 2013, Celanese expects
earnings growth on the back of company-specific initiatives and
to be consistent with its long-term growth objective of 12% to
Celanese is aggressively expanding capacity in the emerging Asian
markets. Its expansion initiatives in China are expected to
support earnings growth. We are also upbeat about the prospect of
its TCX technology.
However, Celanese is witnessing weak demand and pricing in its
core acetyl business. The challenging economic conditions in
Europe and sluggish growth in Asia may impact the company's
Celanese currently carries a short-term (1 to 3 months) Zacks
Rank #1 (Strong Buy).
Other companies in the chemical industry that are worth
Shin-Etsu Chemical Co., Ltd.
). While both Shin-Etsu Chemical and Methanex retain a Zacks Rank
#1 (Strong Buy), FMC holds a Zacks Rank #2 (Buy).