‘Sharp downturn’ in green energy leads to structural changes at Aker

Norway’s industrial investment company Aker has inked two strategic agreements, one referring to the purchase of a share its subsidiary Aker Carbon Capture (ACC) holds in its joint venture with SLB, and the other to a merger with its green energy-focused affiliate Aker Horizons.

In the first deal, ACC will sell a 20% ownership interest in its joint venture with SLB, SLB Capturi, to Aker, followed by a proposed dividend payment to ACC shareholders and the liquidation of ACC. As stated, this follows a strategic review process, concluding that this transaction represents the most attractive alternative for ACC and its shareholders.

More specifically, through the subsidiary of Aker Capital (ACC HoldCo), Aker will acquire the stake interest in SLB Capturi held by ACC’s subsidiary Aker Carbon Capture AS for a cash consideration of NOK 635 million, or around $61 million.

An extraordinary general meeting to consider these matters is expected to be called for May 15, 2025. Subject to shareholder approval and other customary conditions, the transaction is expected to close by the end of Q3 2025.

ACC Chairman, Karl Erik Kjelstad, commented: “This transaction grants shareholders early access to capital—two years ahead of the original timeline—through a carefully structured combination of cash distributions and dividends, delivering meaningful value amid a period of pronounced market volatility.”

Under the second deal, Aker Horizons’ wholly owned subsidiary, AKH Holding, is set to merge with an indirect subsidiary of Aker, AKH MergerCo, with the latter as the surviving entity. As a result, Aker Horizons shareholders are set to receive consideration in cash and shares in Aker for each share owned in Aker Horizons once the merger completes. 

AKH Holding encompasses all business activities of the Aker Horizons group, including its shareholding in ACC, investment in Mainstream Renewable Power, and the Narvik green ammonia projects.

The merger is said to be the result of a strategic review process by Aker Horizons’ board of directors. As disclosed, due to significant market uncertainty and substantial funding requirements needed to realize the value creation potential in Aker Horizons’ portfolio, a stand-alone listed company such as itself is unable to raise financing without diluting existing shareholders. The company also has significant debt that is set to mature in the next 12 months.

Øyvind Eriksen, Aker’s President and CEO, said: “This merger follows a prolonged period of financial uncertainty for Aker Horizons. Despite significant losses for Aker and fellow shareholders in Aker Horizons, our perspective remains long-term. We believe in the underlying industrial potential and are taking steps to protect and rebuild shareholder value through more focused capital deployment and a clearer strategic direction.

AKH has also resolved to redeem 100% of the Aker Horizons’ NOK 2.5 billion (approximately $240 million) green bond, which is not conditional upon the merger’s completion. AKH will use existing cash reserves for the redemption, which is expected to be completed by the end of May 2025.

Lone Fønss Schrøder, Independent Director of Aker Horizons, noted: “This transaction serves the long-term interests of all stakeholders. It reflects the need to adapt to a materially changed market environment, where the sharp downturn in green energy and industrial markets has made capital raising and large-scale execution significantly more challenging. We have already adjusted our strategy — and now also our structure.”

Aker intends to continue to realize the value of AKH Holdings’ existing investments once the merger is finalized. As disclosed, Mainstream’s activities have been scaled down, focusing on a few key areas, including South Africa and Australia. Going forward, the company plans to manage risks and opportunities in the portfolio, including in Chile and within offshore wind. In Narvik, the emphasis will be on developing the data center business opportunity.

“Aker Horizons was founded with a clear vision: to accelerate the transition to Net Zero by applying the Aker group’s industrial, technological, and capital markets expertise to drive global decarbonization through renewable energy, carbon capture, and sustainable industry. The portfolio, built in a different market environment, retains potential with several promising initiatives,” commented Aker Horizons Chairman Kristian Røkke.

“Notably, the powered land sites in Narvik, originally part of our green industry strategy, have evolved into an AI Factory initiative. The surging demand for AI infrastructure offers significant value creation opportunities. Today’s market conditions do not support large-scale green investments to the extent they once did, and realizing this potential requires capital and scale beyond Aker Horizons’ standalone capacity.”

The board plans to work on defining AKH’s future strategy and structure following the completion of the merger. Subject to the fulfillment of several customary closing conditions, the merger is expected to be completed in Q3 2025. Shareholders in AKH will retain their shares following the merger’s completion.

Meanwhile, Aker’s other affiliate, Aker BP, is kicking off major projects in the North Sea. In late April, while confirming that the Deepsea Stavanger began its five-year drilling assignment at the Yggdrasil area, the firm said the rig underwent a comprehensive renewal and significant upgrades as part of its planned 15-year special periodic survey (SPS).

After that, a 180-meter-long towed spool departed Westcon’s yard in Florø, heading to the Valhall field, where it will be installed as part of the Valhall PWP-Fenris project. The project aims to extend the operation of Valhall, which has been producing since 1982, beyond 2028.