Earnings Release • Oct 25, 2021
Earnings Release
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Aker Carbon Capture ASA: third-quarter results 2021
Aker Carbon Capture made good progress with new and existing projects in the
third quarter, as the pure-play carbon capture specialist continued its
international expansion.
"We see clear signs of acceleration across the carbon capture market worldwide,
and we continue to position our company to be a leading player in this important
and fast-growing industry," said Valborg Lundegaard, Chief Executive Officer of
Aker Carbon Capture.
Highlights in the third quarter included progress made in the Brevik CCS project
and securing a number of agreements with new customers in the company's targeted
regions and industries.
Aker Carbon Capture continued to mature the Brevik CCS project to deliver the
world's first industrial-scale carbon capture plant at a cement factory.
In the summer, the Group launched its innovative Carbon Capture as a Service
business model. This positions Aker Carbon Capture to deliver and operate the
full carbon capture value chain through strategic partnerships, and through a
service model, allows customers simply to pay per tonne captured CO2. The first
project to utilise this approach could be with Carbonor, with whom Aker Carbon
Capture signed a Memorandum of Understanding (MoU) to jointly develop the
company's planned low CO2 char production in Øygarden in Western Norway. The
project will utilize Aker Carbon Capture's Just Catch 100 technology integrated
with Carbonor's pyrolysis technology to produce low-emission, high-carbon
reductants for the alloy industry.
Aker Carbon Capture joined the Danish Greensand CO2 transport and storage
project as part of a strong industry consortium to drive forward one of Europe's
leading CO2 infrastructure projects.
The European Commission announced in August that it had found a EUR 14.3 million
Dutch investment aid to Twence Holding BV to build a carbon capture and use
facility to be in line with EU State aid rules. Aker Carbon Capture has signed a
contract with Twence for the project to enable the removal of CO2 from flue
gases at Twence's waste-to-energy installation facility located in Hengelo, in
the Netherlands. The project is expected to start in the fourth quarter of 2021.
Capital raise
In August, Aker Carbon Capture completed a capital increase of NOK 840 million
to support the further growth of its market-leading carbon capture offering. The
company issued 38,181,818 new shares in a private placement, priced at NOK 22
per share. The placement was multiple times over-subscribed amidst strong
demand, particularly from international investors.
Financial result
Revenue for the quarter was NOK 101 million, up NOK 32m from the previous
quarter. This reflected mostly the good progress on the Norcem Brevik EPC
project in the quarter. EBITDA (Earnings before interest, tax, depreciation and
amortisation) for the quarter was negative NOK 54 million, driven by high
activity across tendering, technology and digitalisation efforts, and supporting
the company's international growth, particularly establishing new entities for
the company in Denmark and the UK. There is also a limited contribution from
projects due to no recognized profit on Brevik CCS.
The cash and cash equivalents balance at the end of the quarter was NOK 1,398
million, compared with NOK 552 million at the end of the previous quarter. This
reflected an underlying cash inflow of NOK 20 million in the quarter, which was
helped by an inflow of NOK 77 million in net current operating assets following
payment of achieved project milestones in the quarter, and the net proceeds of
NOK 826 million from the capital raise in August.
Market outlook
The global carbon capture market saw clear signs of acceleration during the
third quarter, with several major supportive policy announcements in Europe and
the United States. This was reflected in a growing number of major corporate
announcements to utilise carbon capture across a range of emitter industries,
many of which centred on the development of multi-industry clusters. The recent
'Global Status of CCS 2021' report from the Global Carbon Capture and Storage
Institute noted 13 of the 20 industrial clusters in advanced development are in
Aker Carbon Capture's key geographical markets of Scandinavia, Northern
continental Europe, and the UK. The report also stated that, as of September
2021, the CO2 capacity of the global carbon capture project pipeline was already
some 48 percent higher than at the end of 2020.
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.
Events after the end of the quarter
After the end of the third quarter, Aker Carbon Capture and Viridor, one of the
UK's leading recycling, resources and waste management companies, announced
plans to help the UK accelerate its decarbonization agenda through a partnership
for next-generation modular carbon capture, utilization and storage technology
(CCUS). The plans include exploring the installation of modular CCUS plants on
five Viridor waste-to-energy sites across the UK. This is part of Viridor's
ambition to bring forward its own net zero timeline by a decade to 2030.
The Group also announced that it will work with Elkem and a number of industrial
partners to implement Aker Carbon Capture's mobile test unit (MTU) with
emissions from smelters in the process industry. This will be the first time
carbon capture is used for these types of emitters in the process industry, and
the project has support from the Research Council of Norway and Gassnova.
Aker Carbon Capture also notes the announcement from the UK Government
concerning the UK industrial cluster sequencing, and the selection of the East
Coast and Hynet clusters as the projects for Track One, with the Scottish
cluster as a reserve. Aker Carbon Capture set up its UK entity in the summer
this year, and along with its key industrial partners, considers it is well
-positioned for the opportunities this important regional market will offer.
ENDS
Aker Carbon Capture will present the results in a live webcast, followed by a
Q&A session, today at CET 1500. Click on the following link to follow the event:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20211026_4
Media contact:
Ivar Simensen, mob: +47 464 02 317 (http://tel:+47 464 02 317), email:
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 October 25, 2021 at CET 07:00.
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