Aker Carbon Capture spent three times as much money as they...

It is not more than just over two months since Aker and Kjell Inge Røkke sent their two new renewable companies Aker Carbon Capture and Aker Offshore Wind on the stock exchange after separating them from Aker Solutions. On Tuesday morning, both companies will present their first results as listed companies.

Aker Carbon Capture achieved a profit after tax of NOK -12.5 million after a turnover of NOK 5.6 million.

Great ambitions

Despite losses in its first listed quarter, Aker Carbon Capture writes that it has ambitions to secure catch contracts to capture 10 million tonnes of CO2 annually by 2025.

The company further writes that they expect to have a negative Ebitda for a period, due to the fact that it is investing further to improve their technology and building the organization to execute contracts and meet expected future demand.

Billion project in Brevik

Although the listed company is new, Aker Solutions has actually been developing solutions for carbon capture, use and storage (CCUS) since the mid-90s and has patented technology.

Most of the customers are outside the traditional oil and gas market. In connection with Aker Carbon Capture being spun off as a separate company this summer, it was therefore argued that there were limited benefits to being an integral part of Aker Solutions from a market perspective.

This summer, Aker Carbon Capture entered into a framework agreement with the HeidelbergCement company Norcem for an EPC delivery (engineering work, procurement and construction) of a carbon capture plant in Brevik in Telemark. The agreement was dependent on the Norwegian authorities deciding to realize the project and grant it funding.

In September, the government announced that it would support the CO2 capture in Norway, and that it would start at Norcem’s factory. The CO2 project has been named “Longship” and will cost a total of 25 billion kroner.

The estimated value of the Aker Carbon Capture contract is NOK 1.7 billion. The project is expected to start in January 2021, while the plant is expected to be operational in 2024.

Best on the stock exchange

– Renewable energy and green technologies have completely different value chains, customers, investor bases and sources of financing. Capitalization and separating offshore wind and the CCUS areas from Aker Solutions brings to the fore a unique opportunity for growth and value creation, said Aker CEO Øyvind Eriksen when Aker Solutions announced that it would separate Aker Offshore Wind and Aker Carbon Capture as separate companies.

He was very right.

Since the listing at the end of August, the share price of Aker Carbon Capture has risen 343 percent. This means a quadrupling of stock market values. The company is thus the stock exchange newcomer this year that has delivered by far the best return to shareholders.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For further terms see here.