Earnings Release • Jul 11, 2022
Earnings Release
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Aker Carbon Capture ASA: second-quarter results 2022
Aker Carbon Capture made strong progress in its existing projects and developed
its project portfolio favorably in the second quarter of 2022, as the pure-play
carbon capture specialist secured new work in the United Kingdom.
Aker Carbon Capture has entered the construction phase for its flagship projects
in Norway and in the Netherlands. The award of a second large-scale front end
engineering design (FEED) carbon capture project for the Keadby 3 gas-to-power
plant reconfirms the company's strong market position in the UK.
"The Keadby 3 FEED award is a milestone for Aker Carbon Capture in terms of
firmly establishing our business in the UK, and a reflection of the significant
tailwinds carbon capture utilization and storage (CCUS) is currently benefitting
from," said Valborg Lundegaard, Chief Executive Officer of Aker Carbon Capture.
"CCUS is acknowledged as a cornerstone solution to decarbonize several
industries. Despite the ongoing energy crisis, political efforts to fight
climate change remain strong both in Europe and the US, driving interest in CCUS
and keeping activity levels at Aker Carbon Capture high. We contribute to
mitigating the effects of climate change, we help strengthen energy security,
and we create and safeguard jobs."
In its most recent report, the International Energy Agency has restated the need
for a large-scale deployment of carbon capture to help reach the midcentury
global climate goals.
Key milestones at development projects in Q2
In May, Aker Carbon Capture reached a key milestone at the CCS Brevik project:
the installation of the first major equipment onsite, as the company is building
the first carbon capture plant at a cement facility in the world. This marks the
beginning of the construction campaign, which will gradually accelerate as
heavier equipment arrives. The peak installation activity at Brevik will be in
2023. From 2024, the carbon capture plant will capture 400,000 tonnes of CO2 per
year.
In the Netherlands, at Twence's waste-to-energy plant in Hengelo, construction
has officially commenced. Aker Carbon Capture is delivering its standardized
Just CatchT. This first of a kind modular plant will reduce CO2 emissions
associated with the generation of energy from the incineration of non-recyclable
waste. The captured CO2 will be transported in liquid form and sold into the
commercial horticulture sector. By the end of 2023, the Just CatchT standardized
plant will start capturing 100,000 tonnes of CO2 per year.
Strengthening foothold in UK market
Aker Carbon Capture is experiencing high activity in the UK, where the
Government has set ambitious targets for the country to become a world leader in
CCS. We are establishing an office in central London, to serve our growing list
of customers and partners.
To develop the groundbreaking Keadby 3 Carbon Capture Power Station, UK energy
company SSE Thermal and Equinor have selected a consortium of Aker Solutions,
Siemens Energy and Doosan Babcock, with Aker Carbon Capture as the carbon
capture provider. The consortium has been awarded the FEED contract for the gas
-to-power plant equipped with carbon capture technology to be built in the
Humber region. The carbon capture facility will be able to capture up to 2
million tonnes CO per year.
Aker Carbon Capture is now working on FEED studies for two major gas-to-power
plants equipped with carbon capture in the UK: earlier this year it started the
FEED for bp Net Zero Teesside Power, also with an annual capture capacity of up
to 2 million tonnes CO2. Moreover, Aker Carbon Capture signed a Memorandum of
Understanding (MoU) with Storegga to collaborate on carbon capture and storage
(CCS) projects and enable industrial emitters access to full value chain
offerings in the UK.
Aker Carbon Capture aims to take a leading position in the global CCUS industry,
and the company continues to target 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.
Financial results
Aker Carbon Capture saw continued strong revenue growth through the last
quarter. The second quarter revenue ended at NOK 194 million, which was up 180
percent compared to the same period last year. This reflects increasing activity
on Brevik CCS, Twence CCU, and bp Net Zero Teesside Power FEED.
EBITDA (Earnings before interest, tax, depreciation and amortization) for the
quarter was negative NOK 49 million. This continued to be driven by activity
related to research and development, digitalization, tenders, business
development, sales and international growth. Aker Carbon Capture ended the first
quarter with a robust cash position at NOK 1.5 billion and equity remained
strong at NOK 1.0 billion.
The company today also published its first-half report, which is attached and
available on akercarboncapture.com.
ENDS
Aker Carbon Capture will present the results in a live webcast, followed by a
Q&A session, today at 15:00 CEST. Click on the following link to follow the
event: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220711_1
Media contact:
Ivar Simensen, mob: +47 464 02 317 (http://tel:+47 464 02 317), email:
Yannick Vanderveeren, mob: +47 458 36 358 (http://tel:+47 458 36 358),
email: [email protected]
Investor contacts:
David Phillips, mob: +44 7710 568279 (http://tel:+44 7710 568279), email:
Christian Yggeseth, mob: +47 915 10 000 (http://tel:+47 915 10 000), email:
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 CO\2\ emissions.
Visit akercarboncapture.com (https://www.akercarboncapture.com/) and connect
with us on LinkedIn (https://www.linkedin.com/company/aker-carbon
-capture), Facebook (https://facebook.com/akercarboncapture),
Twitter (https://twitter.com/akercarbon),
Instagram (https://www.instagram.com/akercarboncapture/) and
YouTube (https://www.youtube.com/channel/UCqE71jAZxmM-CNhfUQq86kQ). This press
release may include forward-looking information or statements and is subject to
our disclaimer, see akercarboncapture.com (https://www.akercarboncapture.com/).
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange announcement was published by Katja Aanestad, Marketing
Communications, Aker Carbon Capture on 11 July 2022 at CEST 07:00.
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