Aker Carbon Capture’s fourth-quarter highlights included the Brevik CCS contract and a series of strategic partnerships with partners and potential customers to strengthen the company’s position in the rapidly growing market for carbon capture, utilization and storage (CCUS).
During the final three months of 2020 the Norwegian parliament approved the funding for the Longship CCS project which will establish the whole CCS value chain at industrial scale. Longship includes Aker Carbon Capture’s breakthrough contract to deliver the world’s first carbon capture plant at a cement facility to Norcem HeidelbergCement in Brevik, Norway.
During the fourth quarter, Aker Carbon Capture also secured a series of strategically important collaboration agreements and partnerships, including a Memorandum of Understanding (MoU) with Haldor Topsoe with the intention to offer a complete solution for low-carbon hydrogen production together with the Danish company.
“In the fourth quarter, we secured our first major contract to deliver a complete carbon capture plant, as well as several partnerships and collaborations with strategically important partners,” said Valborg Lundegaard, Chief Executive Officer of Aker Carbon Capture.
As part of its efforts to improve efficacy and reduce cost, the company entered a technology-cooperation agreement with MAN Energy Solutions to develop energy-efficient compression solutions for CCS applications with heat recovery.
The agreement supports the companies’ joint target to reduce the cost of removing CO2 emissions from industrial plants around the world.
“Throughout 2020, countries and companies around the world introduced and sharpened targets to reduce emissions or achieve ‘net zero’, and many of these will rely on CCUS to realize their ambitions,” said Lundegaard.
Market fundamentals, reflected in recent record high prices for ETF quota prices, remain supportive of further growth. Financial results and outlook Revenue for the quarter was NOK 10.1 million and EBITDA (Earnings before interest, tax, depreciation and amortisation) was negative NOK 30.1 million. The cash balance at the end of the quarter was NOK 457.7 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 last year 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.