Aker Solutions targets growth in low carbon and renewable energy

Source: press release, 23 October 2019

Low carbon and renewable energy solutions
Low carbon and renewable energy solutions (illustration: Aker Solutions)

Aker Solutions aims to generate about half of its revenue from renewable or distinct low carbon solutions by 2030, according to the company’s 20/25/30 strategy.

The oil and gas industry will remain Aker Solutions’ biggest market, but over the next decade the company will have a more balanced portfolio of products and technologies that either generate renewable energy or removes or substantially reduces CO2 emissions.

“The world will continue to see rising energy demand and the challenge for our industry is the need to deliver this with a significantly lower carbon emissions,” says Luis Araujo, chief executive officer of Aker Solutions. “No company is better positioned than Aker Solutions to deliver the solutions to realise renewable energy offshore and at the same time decarbonise the oil and gas industry.”

In all forward-looking scenarios, the industry will need to provide more energy, with a lower carbon footprint. The pace of the energy transition will be dictated by a number of drivers, such as electrification, efficiency gains, low-emission fuels and accelerated cost reductions of renewables. Still, demand for oil and gas is expected to grow over the next decade, although not as fast as the expected growth in renewable energy.

In its updated enterprise strategy, Aker Solutions set out its growth ambitions within the energy industry and beyond. The company aims to derive 20% of its revenue from renewable energy and 25% from distinct low-carbon solutions by the year 2030. Summarised, the update is labelled “20/25/30”.

The renewable energy solutions will primarily come from floating wind while the low carbon segment is a set portfolio of existing Aker Solutions offerings, including carbon capture, utilisation and storage (CCUS), subsea gas compression, electrification of production assets and unmanned platforms.

Aker Solutions has developed and invested in renewable energy and low carbon solutions for many years, and the company has delivered or is involved in several projects in these segments, including:

Renewable Energy:

  • Aker Solutions has taken a 23% stake in Principle Power, which has a proven concept for floating wind and is currently installing the WindFloat Atlantic project.
  • The company is involved in major wind farm developments in the US and South Korea.

Low Carbon Solutions:

  • CCUS – Aker Solutions has developed CCUS since delivering the Sleipner storage solution in 1996. Today, the company is well positioned to realise the first industry-scale carbon capture facility at a cement plant with Norcem Heidelberg in Norway. Aker Solutions is also delivering its modular Just Catch plant to a waste-to-energy plant in the Netherlands, where the CO2 will be utilised as a fertiliser. Finally, the company is deploying its subsea expertise in the ground-breaking Northern Lights CO2 storage project in the North Sea.
  • Subsea Gas Compression – Aker Solutions delivered the world’s first subsea gas compression system to Equinor’s Åsgard field in 2015. The company is currently involved in developing the first subsea gas compression project outside Norway, at the Jansz-Io field for Chevron in Australia.
  • Electrification – Low emission power from shore to Johan Sverdrup and Gina Krogh can generate CO2 emissions savings equivalent to removing 150,000 cars annually. Aker Solutions is involved in several studies for the electrification of fields.

“Growth in segments such as renewables and CCUS increases the addressable market for Aker Solutions,” says Araujo. “Our ambition is to become the recognised leader in low carbon offerings and sustainable solutions. We will achieve this through realising our long-term ambition of 20/25/30.”