Aker Carbon Capture (OTCMKTS: AKCCF) has entered into a strategic collaboration agreement with SINTEF – one of Europe’s largest independent research organizations to develop carbon capture utilization and storage (CCUS) technology.
The agreement is on a non-exclusive basis which means it could include more projects and thus more widespread deployments of carbon capture. Both companies see developing carbon capture utilization and storage as a way to reduce emissions from industry, especially the energy sector. The collaboration is also considered critical for the green transition of Norway.
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“Establishing the right partnerships is a critical component of our strategy and we are pleased to further strengthen our collaboration with SINTEF to develop new innovative solutions to curb CO2 emissions,” said CEO of Aker CC, Valborg Lundegaard.
The companies are seeing this approach as a strategic partnership since it would establish a common framework that will remove barriers and bureaucracy and will enable the companies to work more efficiently and quickly. They plan to explore opportunities to develop new capture technologies, share knowledge and work together more closely to generate and follow-up on new ideas.
“CCUS is an indispensable tool for achieving global climate goals. As a technology, it has risen from nice to have to need to have,” said Nils Røkke, EVP Sustainability at SINTEF.
Aker Carbon Capture stock – the pure-play CO2 capture stock traded over the counter, has initially increased on the news, however, it did take a slight turn on the downside dropping 2.14% on Thursday, April 7th as the stock market is under pressure on inflation fears and FED interest rate decisions.
Carbon capture is often considered controversial because it still allows the use of fossil fuels, however, it also provides benefits to industries that are hard to decarbonize and it still delivers emissions reductions on critical operations.
Aker Carbon Capture and SINTEF also share a history of working together for over 25 years in the field of carbon capture and climate technology so the new collaboration demonstrates the value of long-term partnerships.
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According to Aker, a partnership with SINTEF gives the company access to its significant testing infrastructure and knowledge of carbon capture utilization and storage technologies. That is seen to improve Aker Carbon Capture current capabilities and also enable it to collaboratively identify the next generation CCUS technology and bring it to the market.