Earnings Release • Apr 28, 2022
Earnings Release
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Aker Carbon Capture ASA: First quarter results 2022
Aker Carbon Capture made good progress with existing projects in the first
quarter of 2022. By establishing several strategic partnerships, the pure-play
carbon capture specialist aims to pursue innovation and accelerate CCUS
deployment.
"We continued to position for the future market through a significant and
growing number of project studies and tenders for customers. Given the rising
revenue and the good progress in existing projects, we have started 2022 as we
ended last year: on a high note," said Valborg Lundegaard, Chief Executive
Officer of Aker Carbon Capture. "A rising number of industrial companies want to
reduce their emissions and establish sustainable business models. CCUS can help
enable those climate ambitions. The latest IPCC report stated once again that
CCUS remains central to climate mitigation strategies. Further supported by high
CO2 quota prices, this makes the business case for carbon capture only
stronger."
Development projects on schedule
Highlights in the first quarter included the start of a FEED (Front End
Engineering and Design) contract for Net Zero Teesside Power in the UK, where
Aker Carbon Capture is the technology partner to a consortium of Aker Solutions,
Siemens Energy and Doosan Babcock. The carbon capture facility at Net Zero
Teesside Power will have a capacity of about 2 million tonnes CO2 per annum.
This is the world's first commercial scale gas fired power station with carbon
capture and marks a very important step forward for large scale CCS.
Both the Brevik CCS and Twence CCU projects are progressing according to
schedule. For Brevik CCS, the first carbon capture plant at a cement facility in
the world, Aker Carbon Capture has placed all major purchase orders. Onsite
activity will pick up in June this year, and the main installation work will
take place in 2023. Also at Twence in the Netherlands Aker Carbon Capture is
moving forward as planned. This first of a kind modular plant will enable the
removal of CO2 from flue gases at Twence's waste-to-energy facility, with
captured CO2 to be used by greenhouses to enhance plant growth. Operations at
the plant in Hengelo are scheduled to start at the end of 2023.
Aker Carbon Capture aims to take a leading position in the global CCUS industry,
and the company has 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.
Partnering to pursue innovation and accelerate CCUS deployment
It is Aker Carbon Capture's clear ambition to establish partnerships to pursue
joint innovation and explore opportunities to offer services in the CCUS market.
Collaboration is key to success and a pre-requisite for reaching net zero. This
is exactly why the company has signed a MoU with Microsoft. By fully using the
digital capabilities and domain expertise of Aker Carbon Capture and Microsoft,
the partnership can support industrial emitters to take action and accelerate
the deployment of CCUS.
Aker Carbon Capture has signed a MoU with Northern Lights, aiming to build on
learnings from the Longship project and enable the accelerated deployment of CCS
across Europe. Northern Lights is developing an open and flexible infrastructure
to transport CO2 from industrial emitters by ship to a receiving terminal on the
west coast of Norway for intermediate storage. The CO2 will then be transported
by pipeline for permanent storage in a geological reservoir 2,600 meters under
the seabed. Operations are scheduled to start in 2024.
Aker Carbon Capture has signed a collaboration agreement with SINTEF to
accelerate the transfer of science and research to innovation in the market.
SINTEF has conducted research on CCUS since the 1980s, and has collaborated with
Aker for more than 25 years. The goal will be to further develop CCUS technology
together to reduce CO2 emissions from industry and energy solutions.
Strong collaboration with transport and storage providers is another key element
to the company's strategy of offering the full CCS value chain, including Carbon
Capture as a Service, to industrial CO2 emitters. After the end of the fourth
quarter, Aker Carbon Capture announced MoUs with Altera Infra and Höegh LNG and
with Dan-Unity CO2.
Financial result
Aker Carbon Capture saw continued strong revenue growth through the last
quarter. The first quarter revenue ended at NOK 144 million, which was up 127%
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 61 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.
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/landingpage/hegnarmedia/20220428_12/
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
Specialist, Aker Carbon Capture on 28 April, 2022 at 07:00 CEST.
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