Aker Solutions’ CCS strategy is gaining ground, but can Brevik and Northern Lights offset legacy risk?

Aker Solutions ASA is doubling down on carbon capture and storage (CCS) infrastructure as a pillar of its long-term strategy, with operational milestones in Norway signaling technical and commercial readiness. During the second quarter of 2025, the Oslo-based engineering and services provider announced the first successful capture of CO₂ at Heidelberg Materials’ Brevik cement plant—Norway’s most closely watched industrial decarbonization project. This milestone not only affirms the viability of end-to-end CCS deployment but also marks a shift in Aker Solutions’ positioning toward future margin resilience.

However, the carbon capture narrative is unfolding against the backdrop of continued margin drag in the Renewables and Field Development segment, where legacy lump-sum offshore contracts are still being renegotiated. That raises an important question: Can CCS help Aker Solutions offset risks from its past EPC projects and stabilize earnings in the coming quarters?

How meaningful are Brevik’s CO₂ capture milestone and CCS contracts to Aker Solutions’ future margin mix?

Aker Solutions ASA’s margin recovery efforts increasingly hinge on the performance of its CCS portfolio, particularly large-scale industrial applications like Brevik and infrastructure-driven developments such as the Northern Lights CO₂ transport and storage network. The Brevik plant, commissioned by Heidelberg Materials, is Europe’s first full-scale CCS deployment in the cement industry and represents a critical reference project for the Norwegian energy engineering firm. As part of the Brevik EPC scope, Aker Solutions is responsible for the capture interface, absorber towers, and integration of modularized components—technical specializations that carry higher margins compared to traditional offshore fabrication.

This milestone, while not a new contract win in Q2, plays a strategic role in how institutional investors view the company’s long-term project mix. Analysts have noted that carbon capture infrastructure, particularly in hard-to-abate sectors like cement and steel, could evolve into a multi-billion-kroner pipeline for Aker Solutions by 2030. The Brevik plant has already been cited in investor calls as a commercial proof point, and its successful activation is likely to support bidding efforts in other European jurisdictions considering cement decarbonization mandates.

Meanwhile, the Northern Lights project—backed by Equinor ASA, Shell plc, and TotalEnergies SE—is designed to transport captured CO₂ from industrial sites across Europe to permanent storage under the North Sea. Aker Solutions is executing the topside and modules for the onshore receiving terminal in Øygarden, with the scope extending to electrical, automation, and process system integration. The contract, awarded in earlier years, is one of the company’s more complex and high-margin CCS deliverables. Progress on Northern Lights is being closely monitored by equity analysts as a bellwether for the scale and repeatability of CCS contracting for Aker Solutions going forward.

Still, the contribution of CCS to the company’s current earnings mix remains limited. While the carbon capture pipeline is expanding, its backlog weight is modest compared to brownfield offshore work and lump-sum legacy EPCs. This creates a tension for investors: the CCS narrative is positive, but insufficient on its own to move the margin needle in the immediate term. Full-year 2025 EBITDA margins are still expected to hover between 7.0 and 7.5 percent—excluding income from OneSubsea—and any meaningful uplift will depend on the outcome of ongoing contract renegotiations in the Renewables and Field Development division.

From a long-term positioning standpoint, however, CCS projects are already shaping how institutional capital assesses the company’s risk-reward profile. With EU carbon compliance tightening and industrial polluters seeking technically proven CCS vendors, Aker Solutions finds itself in a strong incumbency position. Execution success at Brevik and Northern Lights may not fully offset near-term project drag, but they are quietly redefining the company’s future margin potential.