Aker Solutions to spin off offshore wind and carbon capture tech divisions
As it plans to merge with its compatriot Kværner, Aker Solutions also intends to spin off its wind development business as well as the carbon capture technology business.
The move should see two separate companies listed on the Oslo Stock Exchange.
“Aker Solutions has developed technology and taken strong positions in markets for offshore wind and carbon capture, utilization and storage,” says Øyvind Eriksen, chairman of Aker Solutions.
“However, it has become increasingly clear that these businesses represent value creation opportunities in a world transitioning to green solutions at accelerated speed and have more potential as stand-alone companies than as an integrated part of an oil service business.”
“Renewables and green technologies have entirely different value chains, customers, investor bases and sources of funding.
“Capitalizing and separating the offshore wind and CCUS business areas from Aker Solutions present a unique opportunity for growth and value creation,” says Eriksen.
Aker Solutions will act as an alliance partner and preferred supplier to both companies to create revenue and customer value within wind and CCUS markets.
Aker Offshore Wind
The company currently holds ownership stakes in ongoing floating offshore wind development prospects in the US and South Korea, while evaluating other markets such as Norway and the UK.
Realizing large wind projects is capital intensive and a stand-alone entity will have financial flexibility to raise required capital, the company said.
Aker Solutions intends to carry out a private placement in this company, guaranteed by Aker ASA, to secure sufficient funding for the next phase of the development of this portfolio.
The wind development company will thereafter apply its shares for trading on Merkur Market, a multilateral trading facility operated by the Oslo Stock Exchange.
Aker Solutions will then propose to distribute its shares in the wind development company to Aker Solutions’ shareholders.
The shares of the Wind Development Company should start trading on Merkur Market during August 2020.
Astrid Skarheim Onsum will head the new company as CEO of Aker Offshore Wind.
Aker Carbon Capture
Aker Solutions has developed CCUS solutions since the mid-90s and is one of few companies with patented technology and a proven track-record.
Most customers are outside traditional oil and gas markets, so the benefit from being an integrated part of Aker Solutions is limited from a market perspective, the company said.
Hydrogen production with CCUS could become a very large market, however Aker Solutions believes that developing a competitive offering would require further capital.
A stand-alone entity will have access to low cost funding as a natural fit for ESG investors.
Furthermore, Aker Solutions is working on the first delivery of a modular carbon capture plant for a waste-to-energy plant in the Netherlands, and is positioned to secure the EPC contract to deliver an industry-scale carbon capture plant to Norcem HeidelbergCement’s project in Brevik, Norway.
Valborg Lundegaard will take the role of CEO of Aker Carbon Capture.
As with the wind development company, Aker Solutions intends a private placement in the carbon capture firm, guaranteed by Aker ASA, including the above mentioned shares plan.