In the fourth quarter 2023, Aker Carbon Capture recorded high commercial activity across Europe and the United States. The company’s order backlog increased to NOK 2.6 billion, up from NOK 1.3 billion in the same period last year. Revenues rose to NOK 573 million, up 139% compared to the same period last year. The cash position at the end of the fourth quarter was solid at NOK 1.1 billion.
“Aker Carbon Capture is experiencing an acceleration in market activity and strong interest in our growing range of modular carbon capture facilities. In 2023, we cemented our leading market position through the award of five Just Catch 100 units to Ørsted, a Just Catch 400 FEED to Celsio, and a Big Catch Process Design Package (PDP) to Uniper. Overall, our pipeline of paid FEEDs, pre-FEEDs, Mobile Test Unit (MTU) campaigns and studies has increased by around 20 million tonnes of CO2 capture per year in 2023. Through the coming year, we will strengthen our organization in the United States and Northern Europe to position for the significant growth opportunities ahead of us”, said Egil Fagerland, Chief Executive Officer at Aker Carbon Capture.
Major projects progressing
The Twence CCU, Brevik CCS and Ørsted Kalundborg Hub CCS projects continued to progress in the quarter and are currently the most mature large-scale carbon capture projects under construction in Europe. At Twence, commissioning is ongoing, which is the final step before sellable CO2 can be produced by the Just Catch 100 unit. At Brevik, preparations for the second heavy lift campaign are ongoing and the project is on track for its planned delivery at the end of 2024. At Ørsted’s Kalundborg CCS Hub, the groundbreaking event took place on site in December.
High commercial activity
In December 2023, Aker Carbon Capture signed a FEED contract with Hafslund Oslo Celsio (Celsio) to deliver Norway’s first carbon capture project at a waste-to-energy facility. The FEED contract, with a framework for a possible EPCIC, follows Celsio’s cost reduction initiative for the Klemetsrud CCS project in Oslo and will be delivered based on Aker Carbon Capture’s modularized Just Catch 400 unit, with a design capacity to capture up to 400,000 tonnes of CO2 per year. Celsio is targeting a Final Investment Decision (FID) in the summer of 2024.
In the same month, Uniper awarded Aker Carbon Capture a Process Design Package (PDP) to deliver design studies for a proposed post combustion carbon capture plant at their Grain power station in the Southeast of England. Uniper’s Grain Carbon Capture project is a proposal to retrofit post combustion carbon capture technology on up to three of the existing Combined Cycle Gas Turbine (CCGT) units at the site, with the potential to capture over 2 million tonnes of CO2 per year. If Uniper selects Aker Carbon Capture as technology licensor at the end of the PDP process, the next step will be to move to the front-end engineering and design phase ahead of a FID, which is expected to be taken by Uniper in the mid-2020s.
Aker Carbon Capture also made strong progress in securing studies and pre-FEED work across Europe in the fourth quarter. For its bespoke Big Catch offering, the company was awarded a pre-FEED by a major European power company covering several electricity generation facilities in Europe with a capture potential of up to 14 million tonnes of CO2. The company was awarded studies in Germany, Switzerland, and Finland and a feasibility study to develop a joint power-to fuel-solution together with MAN Energy Solutions. All these studies are based on the company’s Just Catch offering.
Overall, Aker Carbon Capture has accumulated a pipeline covering approximately 40 million tonnes of CO2 capture per year across all categories of contracted work.
After the quarter end, Aker Carbon Capture signed a Memorandum of Understanding with MAN Energy Solutions to jointly pursue opportunities related to CCUS and CO2 compression in the North American market. The agreement leverages MAN’s expertise in compressor technology and system integration, as well as Aker Carbon Capture’s proven amine technology and carbon capture products. The adoption of standardized and modularized solutions will contribute to drive scale through cost-efficient developments with optimized energy consumption and delivery time.
Aker Carbon Capture saw continued revenue growth through the fourth quarter. Revenues reached NOK 573 million in the period, up from NOK 239 million in the same period last year. The increase in revenues was driven mainly by progress on ongoing Big Catch and Just Catch projects.
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) in the fourth quarter was negative NOK 43 million, compared to negative NOK 47 million in the same period last year. While Big Catch and Just Catch projects delivered positive contributions, the overall negative EBITDA in the period was driven by high commercial and tender activity, United States entry and R&D activity.
Aker Carbon Capture ended the fourth quarter with a solid NOK 1.1 billion cash position and NOK 0.7 billion in equity. The order backlog increased to NOK 2.6 billion, up from NOK 1.3 billion in the same period last year.
Aker Carbon Capture will present the results in an audiocast, followed by a live Q&A session, today at 15:00 CET. Click on the following link to follow the event: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240125_2
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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 CO2 emissions.
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 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 25 January 2024 at CET 07:00.