Houston-based SLB has acquired an 80% share in Norway’s Aker Carbon Capture in a push to accelerate industrial decarbonization at scale.
The transaction is subject to regulatory approvals and is expected to close by the end of the second quarter of 2024. At closing, SLB will pay NOK 9.19 ($0.85) per Aker Carbon Capture Holding (ACCH) share, a total of NOK 4.12bn ($381m) in cash, for 80% of shares in the company. Aker Carbon Capture will also be entitled to a performance-based payment of up to NOK 1.36bn.
The performance-based payments will be subject to the achievement of certain milestones and are due when certain targets are met between 2025 and 2027. ACCH will pay $50m to purchase SLB’s carbon capture business.
After a lock-up period of three years, Aker Carbon Capture will be entitled to sell its stake in ACCH to SLB. The option price will be approximately NOK 1.03bn for the retained 20% stake, and a ceiling at two times this price. After the expiry of the six-month option, SLB will have the right to purchase Aker Carbon Capture’s 20% stake in the combined business during the following six months.
That option price will have a higher floor than the initial option and a ceiling of 2.5x. The deal also has buy-out rights for both shareholders in the event of a change of control in the other shareholder.
The International Energy Agency has estimated that over one gigaton of CO2 per year will need to be captured by 2030, scaling up to over six gigatons by 2050, to reach net zero transition goals.
