American oilfield services firm SLB (NYSE:SLB) has announced a NOK 4.12 billion ($382m) deal to purchase 80% of Norway’s Aker Carbon Capture (OSL:ACC)
SLB could also make additional payments of up to NOK 1.36 billion ($126m) over the next three years based on the performance of the new joint venture business.
ACC will retain a 20% share in the new venture, with conditions for board representation and other governance and minority protection rights included in the deal.
ACC will also have the option to sell its 20% stake after a three year lock-up period.
SLB said the deal combining the two company’s carbon capture, utilisation and storage (CCUS) portfolios will “accelerate the introduction of disruptive early-stage technology into the global market”.
SLB chief executive officer Olivier Le Peuch said CCUS technology will need to scale up between 100 and 200 times in less than three decades to support global net-zero emissions.
“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,” Mr Le Peuch said.
“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.”
ACC chief executive officer Egil Fagerland said the decision to combine the two carbon capture businesses reflects a commitment to accelerate the industrial adoption of the technology.
“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 of customers, employees and shareholders,” Mr Fagerland said.
ACC is involved in a number of CCUS projects in the UK, including the Acorn CCS project near Peterhead alongside Storegga.
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