In the third quarter 2023, Aker Carbon Capture secured a number of strategic pre-FEEDs and engineering studies across Europe and North America. Aker Carbon Capture’s order backlog rose to NOK 3.0 billion, up from NOK 1.5 billion in the same period last year. Revenues rose to NOK 440 million, up 116% compared to the same period last year. The cash position at the end of the quarter was solid at NOK 1.3 billion.
'Aker Carbon Capture is experiencing high levels of commercial activity on both sides of the Atlantic, resulting in a steady growth of our pipeline of Just Catch studies and pre-FEEDs. On a year-to-date basis, this pipeline has been increased by around 9 million tonnes of CO2 capture per year. For our bespoke Big Catch offering, we were recently awarded a pre-FEED covering several power generation facilities in Europe with mega scale capture potential. We have further cemented our position in our core industries such as waste-to-energy and biomass, while also entering new sectors such as minerals production in the U.S., and exploring new markets such as Saudi Arabia', said Egil Fagerland, Chief Executive Officer at Aker Carbon Capture.
Major projects progressing
The Twence CCU, Brevik CCS and Ørsted Kalundborg CCS Hub projects, continued to progress in the quarter and are currently the most mature large-scale carbon capture projects under construction in Europe. At Twence, all equipment and piping has been installed and commissioning has started. At Brevik, the first heavy lift campaign was successfully completed, including the installation of the absorber, CO2 storage tanks and key modules. At Ørsted CCS Kalundborg Hub, the container fabrication for the modular Just Catch units has started.
High commercial activity
In July, Aker Carbon Capture signed a Memorandum of Understanding (MoU) with Aramco, one of the world’s leading integrated energy and chemicals companies, to explore partnership opportunities to deploy carbon capture, utilization and storage (CCUS) and industrial modularization in Saudi Arabia. The MoU is a potential first step for Aker Carbon Capture into the Middle East.
Aker Carbon Capture made strong progress in securing studies and pre-FEED work across Europe and North America in the quarter. The company was awarded a study in the U.S. covering emissions from mineral production facilities with a targeted combined capture of 1.5 million tonnes of CO2 per year, based on the company’s Big Catch offering. In Europe, Aker Carbon Capture was awarded a pre-FEED for a Swedish energy company, as well as studies for a biomass combined heat and power facility in Germany and a waste-to-energy facility in France, with targeted emissions ranging from 200,000 to 250,000 tonnes of CO2 per year. In addition, Aker Carbon Capture was recently awarded a Big Catch pre-FEED from a major European energy company for several mega scale power generation facilities.
'The high demand seen this quarter for our pre-FEED and study services is a testament to Aker Carbon Capture’s leading market position. Many emitters are looking for proven, standardized and modular carbon capture solutions, and with our Just Catch 100 product, and launch of our Just Catch 400 concept, we are in a strong position to meet the market demand for space-efficient modular carbon capture units', said Fagerland.
As Aker Carbon Capture continues to successfully convert opportunities into projects and market activity accelerates, the company is strengthening its project execution capacities and growing its team in the U.S. In October, the company appointed Julie Berg as the new Chief Financial Officer, effective 1 December 2023.
Financial results
Aker Carbon Capture saw continued revenue growth through the third quarter. Revenues reached NOK 440 million in the period, up from NOK 204 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 third quarter was negative NOK 47 million, compared to negative NOK 56 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 sales and tender activity, North America entry and R&D activity.
Aker Carbon Capture ended the third quarter with a solid NOK 1.3 billion cash position and NOK 0.8 billion in equity. The order backlog rose to NOK 3.0 billion, up from NOK 1.5 billion in the same period last year, following the Ørsted Kalundborg CCS contract award in the second quarter of 2023.
Source: Aker Carbon Capture
