All subjects
Carbon Capture

SLB to acquire majority stake in Aker Carbon Capture JV

SLB to acquire majority stake in Aker Carbon Capture JV
SLB provides fit-for-purpose solutions—from modular to holistic to assess, develop, and operate across the entire CCUS value chain (image courtesy SLB).

US-headed global technology major SLB has announced an agreement to combine its carbon capture business with Norway-headed pure-play carbon capture company Aker Carbon Capture AS (ACC) to support accelerated industrial decarbonization at scale.

The International Energy Agency (IEA) sees carbon capture, utilization, and sequestration (CCUS) playing a critical role in the net-zero transition—estimating that over one gigaton of carbon dioxide (CO2) per year will need to be captured by 2030, scaling up to over six gigatons by 2050.

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 percent 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, said Olivier Le Peuch, CEO of SLB.

Majority owner of new JV

Bringing together complementary technology portfolios, leading process design expertise, and an established project delivery platform, the combination will leverage ACC’s commercial carbon capture product offering and SLB’s new technology developments and industrialization capability.

It will create a vehicle for accelerating the introduction of disruptive early-stage technology into the global market on a commercial, proven platform.

Following the transaction, SLB will own 80 percent of the combined business and ACC will own 20 percent.

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. 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, said Egil Fagerland, CEO at ACC.

SLB will pay NOK 4.12 billion to purchase 80 percent of Aker Carbon Capture Holding AS (ACCH), which holds the business of ACC and will contribute the SLB carbon capture business to the combined entity.

SLB may also make additional payments of up to NOK 1.36 billion over the next three years based on the performance of the business.

The transaction is subject to regulatory approvals and is expected to close by the end of the second quarter of 2024.

SEB is acting as a financial advisor, BAHR as deal counsel, and Wikborg Rein as governance counsel to ACC.

Most read on Bioenergy International

Get the latest news about Bioenergy

Subscribe for free to our newsletter
Sending request
I accept that Bioenergy International stores and handles my information.
Read more about our integritypolicy here