SLB and Aker Carbon Capture Set To Merge Carbon Capture Operations In Landmark Deal

Aker Carbon Capture And SLB Announce New Joint Venture - Carbon Herald

Aker Carbon Capture (ACC) and SLB have announced a new joint venture aimed at advancing large-scale industrial decarbonization efforts. 

This partnership will merge their respective carbon capture operations, utilizing ACC’s expertise in the field with SLB‘s innovative technologies. The companies shared that, as part of the agreement, SLB will have an 80% ownership stake in the newly merged company, while Aker Carbon Capture will retain a 20% share.

“The decision to combine ACC and SLB’s carbon capture business is underpinned by a strategic vision that reflects our commitment to accelerate the industrial adoption of carbon capture,” said Egil Fagerland, chief executive officer, ACC. “By partnering with SLB, we will become a diversified, global carbon capture player. Our combined suite of technologies and global reach will make a platform positioned to profitably scale faster, to the benefit of customers, employees and shareholders.”

Olivier Le Peuch, CEO of SLB commented on the deal by saying: “For CCUS to have the expected impact on supporting global net-zero ambitions, it will need to scale up 100-200 times in less than three decades. Crucial to this scale-up is the ability to lower capture costs, which often represent as much as 50-70% of the total spend of a CCUS project. We are excited to create this business with ACC to accelerate the deployment of carbon capture technologies that will shift the economics of carbon capture across high-emitting industrial sectors.”

Relevant: Aker Carbon Capture Awarded Milestone Project In The United States

The details of the deal state that upon completion, SLB will give Aker Carbon Capture (ACC) a total of $380 million (NOK 4.12 billion) in cash for 80% of the shares in Aker Carbon Capture Holding AS (ACCH), the company that owns ACC.

Furthermore, ACC will keep $37 million (NOK 400 million) in cash. The total amount paid for ACCH and the retained cash equate to $0.85 (NOK 9.19) per share of ACC. ACC will also have the opportunity to receive a performance-based payment of up to $130 millio (NOK 1.36 billion).

ACC and SLB, as joint shareholders of the merged company, will be bound by a shareholders’ agreement that outlines various aspects of their collaboration. 

The agreement will cover board representation, governance rights, and protections for minority interests for ACC, where SLB will provide financing for the implementation of the business plan through shareholder loans, while ACC will have the option to sell its 20% share in the combined business at a later date.

Read more: SLB Launches Screening And Ranking Tool For CO2 Storage Sites

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