Energy services and technology company SLB announced today an agreement to acquire a majority stake in carbon capture technology company Aker Carbon Capture for $380 million, and form a new carbon capture joint venture, in a deal the companies said is aimed at supporting industrial decarbonization at scale.

Spun out of energy services company Aker Solutions in 2020, Norway-based Aker Carbon Capture (ACC) offers proprietary carbon capture technology to reduce and remove CO2 emissions from industrial plants, which can be applied to existing or new build facilities. The company’s solution uses a mixture of water and organic amine solvents to absorb CO2, which can be applied to a broad range of sectors, including gas, coal, cement, refineries, bio- and waste-to-energy and hydrogen.

According to SLB, the new agreement comes as carbon capture, utilization, and sequestration (CCUS) capacity is set up to scale significantly over the coming decades, with the International Energy Agency (IEA) anticipating that more than one gigaton of CO2 per year will be needed to support global decarbonization plans by 2030, and more than 6 gigatons by 2050.

SLB CEO Olivier Le Peuch said:

“For CCUS to have the expected impact on supporting global net-zero ambitions, it will need to scale up 100-200 times in less than three decades. Crucial to this scale-up is the ability to lower capture costs, which often represent as much as 50-70% of the total spend of a CCUS project. We are excited to create this business with ACC to accelerate the deployment of carbon capture technologies that will shift the economics of carbon capture across high-emitting industrial sectors.”

Under the new agreement, SLB will own 80% of the joint venture, with ACC owning the remaining 20%, and SLB will also contribute its own carbon capture business into the JV. SLB may also make additional performance-based payments of up to NOK 1.36 billion (USD$125 million) over the next three years.

According to the companies, the combined technology portfolio, capabilities and project delivery platform will enable the acceleration of disruptive early-stage technologies, bringing them to market more quickly and economically.

ACC CEO Egil Fagerland said:

“The decision to combine ACC and SLB’s carbon capture business is underpinned by a strategic vision that reflects our commitment to accelerate the industrial adoption of carbon capture. By partnering with SLB, we will become a diversified, global carbon capture player. Our combined suite of technologies and global reach will make a platform positioned to profitably scale faster, to the benefit of customers, employees and shareholders.”