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SLB and Aker Carbon Capture Announce Closing of Carbon Capture Joint Venture

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SLB and Aker Carbon Capture (ACC) have finalized their joint venture aimed at accelerating the adoption of carbon capture technologies across various industries. This new entity merges SLB's and ACC's technological portfolios to enhance industrial decarbonization efforts. The venture combines ACC's Advanced Carbon Capture™ technologies, like Just Catch™ and Big Catch™, with SLB's non-aqueous solvent and sorbent-based solutions. Currently, seven projects are in progress, with a combined capacity to capture 1 million tonnes of CO2 annually. SLB holds an 80% stake in the venture, headquartered in Oslo, with ACC owning the remaining 20%.

Positive
  • Joint venture between SLB and ACC combines advanced technologies to accelerate carbon capture.
  • Seven ongoing projects with a capacity to capture 1 million tonnes of CO2 per year.
  • SLB owns 80% of the new venture, giving it significant control and potential revenue benefits.
  • Combines ACC's advanced amine-based technologies with SLB's solvent and sorbent-based solutions.
  • Headquartered in Oslo, benefiting from regulatory support in a leading market for decarbonization.
Negative
  • High initial investment required for setting up and deploying new carbon capture technologies.
  • Operational risks associated with integrating different technological platforms.
  • Potential market adoption challenges in scaling new technologies across varying industries.

The joint venture between SLB and Aker Carbon Capture is a significant development in the carbon capture industry. By combining their technologies and expertise, they aim to enhance the adoption of carbon capture solutions across various sectors. This partnership indicates a strategic move towards addressing industrial emissions, which is critical for achieving global net-zero targets. The focus on both existing amine-based technologies and emerging solvent-based solutions could lead to a diversified portfolio, catering to different industrial needs.

This collaboration could lead to more efficient and scalable carbon capture systems, potentially reducing costs and increasing feasibility for broader applications. The announcement of seven installations with a capacity to capture up to 1 million tonnes of CO2 per year is a promising start. However, it is important to monitor the execution of these projects and their real-world efficacy in reducing carbon emissions. The industry's reliance on regulatory support and carbon pricing mechanisms will also play a important role in the success of this venture.

From a financial perspective, the joint venture between SLB and Aker Carbon Capture can be seen as a strategic investment in the growing carbon capture market. SLB's 80% ownership indicates a significant commitment, possibly reflecting their confidence in the commercial viability of these technologies. The financial implications for SLB and ACC stakeholders include potential revenue growth from the deployment of carbon capture technologies and the opening of new business opportunities in the decarbonization sector.

However, investors should be cautious of the capital expenditure required for the development and scaling of these technologies. The financial benefits may not be immediate and the venture's success will depend on market adoption, regulatory incentives and the ability to achieve cost reductions through technological advancements. Long-term investors might find this venture appealing, given the increasing global emphasis on sustainable practices and decarbonization mandates.

The technological aspect of this joint venture is noteworthy. By integrating SLB's non-aqueous solvent and emerging sorbent-based solutions with ACC's proven amine-based technologies, the new company is positioned to offer versatile and robust carbon capture solutions. This breadth of technology can address diverse industrial needs, from medium- and large-scale facilities to offshore applications.

The modular nature of technologies like Just Catch™ and Big Catch™ could facilitate more straightforward integration into existing industrial operations. The innovation in non-aqueous solvents and sorbents also suggests potential breakthroughs in efficiency and cost-effectiveness, which are critical for widespread adoption. However, the real test will be in the deployment and operational performance of these systems in varied industrial environments. Continuous innovation and adaptation to meet industry-specific challenges will be essential for the long-term success of this joint venture.

The joint venture will enable wider adoption of market-ready and new carbon capture technologies for power and hard-to-abate industrial sectors worldwide

HOUSTON & OSLO, Norway--(BUSINESS WIRE)-- Regulatory News:

SLB (NYSE: SLB) and Aker Carbon Capture (ACC) announced today the closing of their previously announced joint venture. The new company combines technology portfolios, expertise and operations platforms to support accelerated carbon capture adoption for industrial decarbonization at scale.

“There is no credible pathway toward net zero without deploying carbon capture and sequestration (CCS) at scale,” said Gavin Rennick, president of SLB’s New Energy business. “In the next few decades, many industries that are crucial to our modern world must rapidly adopt CCS to decarbonize. Through the joint venture, we are excited to accelerate disruptive carbon capture technologies globally.”

The new company will combine ACC’s amine-based Advanced Carbon Capture™ technologies, including Just Catch™ and Big Catch™ modular plant technologies for medium- and large-scale facilities, and Just Catch Offshore™ for offshore gas turbines, with SLB’s portfolio of technology solutions, including non-aqueous solvent and emerging sorbent-based offerings. The company currently has seven technology installations in progress that have the capacity to capture up to 1 million tonnes of CO2 emissions per year.

“There is no business as usual in the push toward net zero—we will accelerate decarbonization today and commercialize innovative technologies for the future,” said Egil Fagerland, newly appointed Chief Executive Officer of the SLB–Aker Carbon Capture joint venture. “We are proud of the carbon capture plants we are delivering across various industries, with each customer being an important front-runner in its segment. Successful project deliveries are paving the way for other emitters to follow,” continued Fagerland.

The new company will be headquartered in Oslo. SLB owns 80% of the new company while ACC ASA owns the remaining 20% stake.

About SLB

SLB (NYSE: SLB) is a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

About Aker Carbon Capture

Aker Carbon Capture is a pure-play carbon capture company with solutions, services and technologies serving a range of industries with carbon emissions, including the cement, bio and waste-to-energy, gas-to-power and blue hydrogen segments. Aker Carbon Capture's proprietary, carbon-capture technology offers a unique, environmentally friendly solution for removing CO2 emissions. Find out more at akercarboncapture.com.

Cautionary Statement Regarding Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “can,” “estimate,” “intend,” “anticipate,” “will,” “potential,” “projected" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as forecasts or expectations regarding the deployment of, or anticipated benefits of, SLB’s new technologies and partnerships; statements about goals, plans and projections with respect to sustainability and environmental matters; forecasts or expectations regarding energy transition and global climate change; and improvements in operating procedures and technology. These statements are subject to risks and uncertainties, including, but not limited to, the inability to achieve net-negative carbon emissions goals; the inability to recognize intended benefits of SLB’s strategies, initiatives or partnerships; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the timing or receipt of regulatory approvals and permits; and other risks and uncertainties detailed in SLB’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Media

Moira Duff – Director of External Communications

SLB

Tel: +1 (713) 375-3407

media@slb.com

Stian Andreassen – ACC ASA media contact

Tel: +47 416 43 107

stian.andreassen@akerhorizons.com

Hanne Rolén – JV media contact

Tel: +47 990 02 571

hanne.rolen@akercarboncapture.com

Investors

James R. McDonald – Vice President of Investor Relations

Joy V. Domingo – Director of Investor Relations

SLB

Tel: +1 (713) 375-3535

investor-relations@slb.com

David Phillips, Head of Capital Markets

ACC

Tel: +44 7710 568279

david.phillips@akercarboncapture.com

Source: SLB

FAQ

What is the new joint venture between SLB and Aker Carbon Capture?

The joint venture is aimed at accelerating the adoption of carbon capture technologies across various industries by combining SLB's and ACC's technological portfolios.

What technologies are involved in the SLB and Aker Carbon Capture joint venture?

The venture combines ACC's Advanced Carbon Capture™ technologies, including Just Catch™ and Big Catch™, with SLB's non-aqueous solvent and sorbent-based solutions.

How much CO2 can the current projects of the SLB–Aker Carbon Capture joint venture capture?

The seven ongoing projects have a combined capacity to capture 1 million tonnes of CO2 annually.

What is the ownership structure of the SLB and Aker Carbon Capture joint venture?

SLB owns 80% of the new company, while Aker Carbon Capture owns the remaining 20%.

Where is the headquarters of the SLB–Aker Carbon Capture joint venture located?

The headquarters of the new joint venture is located in Oslo.

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