• Natural Gas News

    US-based SLB to buy majority stake in Norway's Aker Carbon Capture

Summary

The 4.12bn Norwegian crowns ($380mn) deal is expected to close in second quarter of 2024.

by: Shardul Sharma

Posted in:

Americas, Natural Gas & LNG News, Europe, Topics, Norway, News By Country, United States

US-based SLB to buy majority stake in Norway's Aker Carbon Capture

New York-listed technology company SLB will acquire an 80% stake in Norway's Aker Carbon Capture (ACC) for 4.12bn Norwegian crowns ($380mn), according to a statement released on March 27.

This acquisition is a strategic move by SLB to accelerate the deployment of carbon capture technologies and support global net-zero ambitions. The International Energy Agency (IEA) has identified carbon capture, utilisation, and sequestration (CCUS) as playing a crucial role in the net-zero transition. They have estimated that over one gigaton of 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,” said Olivier Le Peuch, CEO, SLB. “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.”

As part of the deal, SLB will contribute its carbon capture business to the combined entity. SLB may also make additional payments of up to 1.36bn crowns 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, 2024.

Meanwhile, Aker Carbon Capture Holding AS (ACCH), which holds the business of ACC, will pay $50mn to purchase SLB's carbon capture business, according to a separate statement released by ACC.

"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, CEO, ACC. "By partnering with SLB, we will become a diversified, global carbon capture player."