Published by Todd Bush on April 3, 2024
The new company will combine technology portfolios, expertise and operations platforms to bring carbon capture solutions to market, faster and more economically.
OSLO, Norway, March 27, 2024 /PRNewswire/ -- Aker Carbon Capture ASA (OSLO: ACC) today announced an agreement with SLB to combine their respective carbon capture businesses to support accelerated industrial decarbonization at scale.
>> In Other News: Getech and Expro Partner to Advance Sustainable Energy Solutions
>>Read more about Aker Carbon Capture here
Bringing together complementary technology portfolios, leading process design expertise and an established project delivery platform, the partnership will leverage ACC's commercial carbon capture product offering and SLB's new technology developments and industrialization capability. It will create a vehicle for accelerating the introduction of early-stage technologies into the global market on a commercial, proven platform. Following the transaction, SLB will own 80% of the combined business and ACC will own 20%.
The International Energy Agency (IEA) sees carbon capture, utilization, and sequestration (CCUS) playing a critical role in the net-zero transition - estimating that over one gigaton of CO2 per year will need to be captured by 2030, scaling up to over six gigatons by 2050.
"The decision to combine ACC and SLB's carbon capture business is underpinned by a strategic vision that reflects our commitment to accelerate the industrial adoption of carbon capture," said Egil Fagerland, chief executive officer, ACC. "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."
The transaction is subject to regulatory approvals and is expected to close by end of the second quarter, 2024.
Transaction details
At closing, SLB will pay NOK 4.12 billion in cash to ACC for the purchase of 80% of the shares in Aker Carbon Capture Holding AS (ACCH), which holds the business of ACC. In addition, ACC will retain NOK 0.40 billion in cash. The sum of the purchase price for ACCH and retained cash corresponds to a value per ACC share of NOK 9.19. In addition, ACC will be entitled to a performance-based payment of up to NOK 1.36 billion.
The performance-based payments will be subject to the achievement of certain milestones, order intake and margin targets. The payments will be due when certain targets are met in the period 2025 to 2027, weighted towards the end of the period upon finalization of the financial statements for 2027. The performance-based payments will carry a market-based interest rate from the date of closing until the date of payment.
ACCH will pay USD 50 million to purchase SLB's carbon capture business.
The cooperation between ACC and SLB as shareholders of the combined business, will be governed by a shareholders' agreement. This will, inter alia, provide for board representation and certain other governance and minority protection rights for ACC, for SLB to finance the realization of the business plan by shareholder loans and for the possibility for ACC to sell its 20% stake in the combined business in the future.
After a lock-up period of three years, ACC will be entitled to sell its stake in ACCH to SLB during a period of six months (put option). The put option price will be based on the fair market value of the combined business with a floor equal to the purchase price agreed for ACCH as set out above (on a per share basis, and not including any performance-based payments) corresponding to approximately NOK 1.03 billion for the retained 20% stake, and a ceiling at 2.0x this price. Conversely, SLB will after expiry of the put option have a right to purchase ACC's 20% stake in the combined business during the following six months (call option). The call option price will be based on the fair market value of the combined business with a higher floor than the put option floor and a ceiling at 2.5x. The shareholders' agreement also has customary buy-out rights for both shareholders in the event of a change of control in the other shareholder.
Advisors
SEB is acting as financial advisor, BAHR as deal counsel and Wikborg Rein as governance counsel to ACC.
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
https://news.cision.com/aker-carbon-capture-asa/i/aker-carbon-capture,c3284156
Aker Carbon Capture
SOURCE Aker Carbon Capture ASA
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside this Issue 🔒 Capturepoint Annouces Agreements With Energy Transfer for Carbon Capture and Storage in Louisiana ✈️ Taking Flight with Sustainable Aviation Fuels: A New Era for Cleaner Skies ...
Inside this Issue 🚗 Nikola Expands Hydrogen Network With Inauguration of Second Hyla Refueling Station in Southern California 🌱 Captura Advances to the Top 20 Finalists in XPRIZE Carbon Removal Co...
Inside this Issue ✈️ U.S. Department of the Treasury, IRS Release Guidance to Drive American Innovation, Cut Aviation Sector Emissions 🛫 ESS Technology Takes Off at Schiphol to Decarbonize Air Tra...
Capturepoint Annouces Agreements With Energy Transfer for Carbon Capture and Storage in Louisiana
_Agreements formalize a joint development framework and dedication of CO2 from additional Energy Transfer facilities in Louisiana_ ALLEN, TEXAS, May 8, 2024 – [CapturePoint LLC and affiliate Cap...
Nexergy Holdings PLC and Lorentz Collaborate to Revolutionise Green Hydrogen Production
**The collaboration by Nexergy and Lorentz will realise the commercial production of ‘Green’ Hydrogen for use in multiple industries.** London, UK, May 09, 2024 (GLOBE NEWSWIRE) -- [Nexergy Hold...
_Air Products will Highlight the PRISM_® _GreenSep LNG membrane separator at BIOGAS AMERICAS 2024 in Savannah, Georgia_ LEHIGH VALLEY, Pa., May 10, 2024 /PRNewswire/ -- [Air Products](https://ww...
Energy Vault, ACEN Australia Announce Agreement for 400 MWh of Battery Energy Storage Deployments
_ACEN Australia and Energy Vault to collaborate on battery energy storage system (BESS) deployments, with 200 MW/400 MWh system, at ACEN Australia’s 720 MW New England Solar_ _The 50 MW/100 MWh ...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.