US-French oilfield services company SLB said on 27 March that it is combining its carbon capture business with Norway’s Aker Carbon Capture to support accelerated industrial decarbonization at scale.
By bringing together complementary technology portfolios, process design expertise, and established project delivery platforms, the partnership seeks to leverage these capabilities to accelerate the introduction of early-stage technologies into the global market on a commercial, proven platform.
SLB will own 80% of the combined business and pay NOK 4.12 billion ($381 million) in cash for Aker Carbon Capture Holding (ACCH). ACCH will pay $50 million to purchase SLB’s carbon capture business and hold the remaining 20% stake.
SLB may also make additional payments of up to NOK 1.36 billion based on the business's performance. These payments are subject to the achievement of certain milestones, order intake, and margin targets.
According to the International Energy Agency, carbon capture, utilization, and sequestration (CCUS) will play a critical role in the net-zero transition. The agency estimates that more than 1 gigaton (Gt) of CO2 per year will need to be captured by 2030, scaling up to more than 6 Gt by 2050.
“Crucial to this scale-up is the ability to lower capture costs, which often represent as much as 50% to 70% of the total spend of a CCUS project,” said Olivier Le Peuch, CEO of SLB. “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.”
Egil Fagerland, CEO of ACC, said in a separate statement that the decision to combine the carbon capture businesses is underpinned by a strategic vision that reflects a 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 customers, employees, and shareholders.”
The transaction is subject to regulatory approvals and is expected to close by the end of the second quarter 2024.
