Aker Carbon Capture third-quarter results 2020

Aker Carbon Capture’s third-quarter highlight was the Norwegian government’s recommendation to realize carbon capture and storage in Norway, marking a breakthrough for the company’s CCS technology.

During the third quarter, Aker Carbon Capture was spun off from Aker Solutions and listed on the Merkur Market on the Oslo Stock Exchange, following a successful private placement that raised NOK 500 million.

Operationally, the highlight of the quarter came on September 21, when the Norwegian government proposed to launch “Longship”, a complete carbon capture and storage (CCS) project. Aker Carbon Capture has a contract with Norcem HeidelbergCement for the EPC delivery of the CO2 capture plant in the Longship project – at the cement plant in Brevik, Norway. This will be the first carbon capture project at a cement facility anywhere in the world.

“The Longship project is a major breakthrough for our company and a big step forward for the whole CCS industry,” said Valborg Lundegaard, Chief Executive Officer of Aker Carbon Capture. “In addition to reducing annual CO2 emissions by 400,000 tonnes, the project will establish a supply chain and provide valuable experience for the industry, to further advance the development of CCS in Europe and beyond,” said Lundegaard.

Other quarterly highlights included a Memorandum of Understanding with Sweden’s Vattenfall to accelerate the evaluation of future carbon capture plants in Sweden and Northern Europe. The agreement will support Vattenfall´s ambitions to achieve negative emissions from waste and bio CCS plants.

Market activity remained high throughout the quarter, as a rising number of companies have launched ambitions to reduce emissions from operations. Most of the discussions are with companies based in northern Europe.

“While the timing of new awards remains uncertain, the number of market opportunities is rising every week,” said Lundegaard.

Financial results and outlook Revenue for the quarter was NOK 5.6 million and EBITDA (Earnings before interest, tax, depreciation and amortisation) was negative 12.6 million. The cash balance at the end of the quarter was NOK 493 million.

The company is currently investing to further improve its technology offering and build up the organization to execute contracts and meet expected future demand. In this period EBITDA is expected to remain negative.

Aker Carbon Capture aims to take a leading position in the global CCS industry, and the company today launched a long-term goal of ‘10 by 25’, which states that the company will have secured firm contracts for carbon capture plants for a total of 10 million tonnes per year by the end of 2025.

“More and more countries, industries and companies seem to realise that CCS is part of the solution to reducing industrial emissions, which sets our company on a path towards strong growth in the coming years,” said Lundegaard.

Aker Carbon Capture will present the results in a live webcast, followed by a Q&A session, today at CET 09:00.

ENDS

Media Relations:
Ivar Simensen, mob: +47 464 02 317, email: ivar.simensen@akerhorizons.com

Aker Carbon Capture is a dedicated carbon capture technology company with solutions, services and technologies covering the entire CCUS value chain from capture, transport, utilization through to storage of CO₂ and enhanced oil recovery. We serve a range of industries with carbon emissions, including cement, waste-to-energy, oil & gas and steel.

Visit akercarboncapture.com and connect with us on LinkedIn, Facebook, Twitter, Instagram and YouTube.

This press release may include forward-looking information or statements and is subject to our disclaimer, see akercarboncapture.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.