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Comment Sustainability

Aker Solutions to spin off carbon-capture business

By Mary Page Bailey |

Aker Solutions is launching a series of structural and strategic changes to transform the company and enhance shareholder value by spinning off the wind and carbon capture businesses to shareholders and merging Aker Solutions ASA with Kværner ASA to create an optimized supplier company. Kjetel Digre has been appointed Chief Executive Officer of Aker Solutions, effective August 1, 2020, and will lead the combined company. 

Aker Solutions intends to spin off its wind development business as well as the carbon capture technology business to Aker Solutions’ shareholders in two separate companies expected to be admitted to trading on Merkur Market on the Oslo Stock Exchange.

“Aker Solutions has developed technology and taken strong positions in markets for offshore wind and carbon capture, utilization and storage,” says Øyvind Eriksen, Chairman of Aker Solutions. “However, it has become increasingly clear that these businesses represent value creation opportunities in a world transitioning to green solutions at accelerated speed and have more potential as stand-alone companies than as an integrated part of an oil service business.”

“Renewables and green technologies have entirely different value chains, customers, investor bases and sources of funding. Capitalizing and separating the offshore wind and CCUS business areas from Aker Solutions present a unique opportunity for growth and value creation,” says Eriksen. 

Aker Solutions will be an alliance partner and preferred supplier to both companies to create revenue and customer value within wind and CCUS markets.

Kvaerner and Aker Solutions have entered into a merger plan, whereby the two entities will join forces to create a new supplier company with a stronger position as a solid execution partner, enabling sustainable, low-carbon oil and gas production, and accelerating growth in renewable energy industries. Aker Solutions and Kvaerner have agreed to merge the companies based on the principle of equal parties. The name of the new company will be Aker Solutions ASA.

The combined company will have about 15,000 employees in more than 50 locations around the world, including about 8,000 employees in Norway. Combined 2019 revenues for the companies were about NOK 38 billion, with an EBITDA of NOK 2.7 billion.

Aker Solutions has developed CCUS solutions since the mid-90s and is one of few companies with patented technology and a proven track-record. Most customers are outside traditional oil and gas markets, so the benefit from being an integrated part of Aker Solutions is limited from a market perspective. Hydrogen production with CCUS could become a very large market, however developing a competitive offering would require further capital. A stand-alone entity will have access to low cost funding as a natural fit for ESG investors.

Aker Solutions is working on the first delivery of a modular carbon capture plant for a waste-to-energy plant in the Netherlands, and is positioned to secure the EPC contract to deliver an industry-scale carbon capture plant to Norcem HeidelbergCement’s project in Brevik, Norway.

Aker Solutions intends to separate its CCUS business in a separate entity, Aker Carbon Capture (the “CCUS Company”), followed by a private placement in the company, guaranteed by Aker ASA, to secure sufficient funding for the next phase of the development. The CCUS Company will then apply for its shares to be admitted to trading on Merkur Market and Aker Solutions will propose to distribute its shares in the CCUS Company to Aker Solutions’ shareholders. The shares in the CCUS Company are expected to start trading on Merkur Market during August 2020. Valborg Lundegaard will be appointed CEO of Aker Carbon Capture.

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