Aker Carbon Capture and SLB to merge carbon capture ventures

In a landmark move aimed at propelling industrial decarbonization efforts forward, Aker Carbon Capture ASA (ACC) and SLB have officially announced their agreement to merge their carbon capture ventures. This strategic alliance is poised to significantly enhance the commercial deployment of carbon capture technologies on a global scale, signaling a major step towards achieving Net Zero CO2 emissions by 2050. Here, we delve into the details of the transaction, the synergies between the companies, and the broader implications for the carbon capture sector and industrial decarbonization.

At the forefront of this partnership, SLB will acquire an 80% stake in the combined carbon capture business, with ACC retaining the remaining 20%. This distribution underscores the value both parties place on each other’s contributions to the venture. The transaction is financially underpinned by SLB’s cash payment of NOK 4.12 billion to ACC for the majority share, alongside ACC’s retention of NOK 0.40 billion in cash. This arrangement not only highlights the financial dynamics of the deal but also sets the stage for a performance-based payment scheme, potentially reaching up to NOK 1.36 billion, further aligning the interests of both companies in the success of the venture.

The collaboration between ACC and SLB is rooted in a shared commitment to accelerating the transition towards a low-carbon economy. ACC’s pioneering carbon capture solutions, coupled with SLB’s technological innovations and industrialization capabilities, create a formidable force in the quest for scalable decarbonization solutions. This partnership is expected to fast-track the introduction of emerging carbon capture technologies into the market, leveraging ACC’s extensive project portfolio and SLB’s global reach.

The merger represents a significant milestone in the carbon capture and storage (CCS) industry, highlighting the growing recognition of CCS as a critical component of global decarbonization strategies. By combining their strengths, ACC and SLB aim to address some of the key challenges facing the CCS sector, including technology commercialization, cost reduction, and the scaling of carbon capture projects across diverse industrial segments.

This transaction is more than a mere business deal; it embodies a strategic vision for long-term value creation and sustainable growth in the face of climate change. Aker Horizons CEO Kristian Røkke’s affirmation of SLB as the ideal partner to scale cost-effective carbon capture solutions across the value chain reflects a deep-seated belief in the transformative potential of this partnership. Furthermore, the deal is a testament to the ongoing evolution of Aker Horizons and ACC’s role in fostering the development of the CCUS industry since ACC’s inception and public listing in 2020.

The strategic merger of Aker Carbon Capture’s and SLB’s carbon capture businesses marks a pivotal moment in the pursuit of industrial decarbonization at scale. This partnership is set to catalyze the global deployment of carbon capture technologies, driving forward the agenda for a sustainable, low-carbon future. As the transaction moves towards completion, the focus will be on regulatory approvals, with the closing expected by the end of the second quarter of 2024. The commitment of ACC and SLB to this venture not only underscores their leadership in the CCUS space but also signals a promising new chapter in the fight against climate change.