2008-01-24

Expands CO2 capturing business

Aker Kværner transfers its Just Catch technology for CO2 capture to the company Aker Clean Carbon, which will focus on developing CO2 capture projects. Aker Kvaerner will have 30 percent of the shares in Aker Clean carbon, while Aker ASA will own 70 percent. Aker Kvaerner will also be responsible for supplying engineering and construction for the coming CO2 capturing facilities. Aker Clean Carbon, in an agreement with the Norwegian government, will complete a first plant at Kårstø on the West Coast of Norway.

The new CO2 capturing unit at the gas power plant at Kårstø is likely to become the world's first and largest CO2 capture facility of its kind. The facility will begin operation as early as 2009, removing carbon dioxide from exhaust emissions from the gas power plant.

"Aker Kvaerner has been developing the technology which forms the foundation for this new business which will have an impact on reducing emissions and reducing climate change challenges. I am also excited that Aker Kvaerner will be responsible to deliver the CO2 capturing plant at Kårstø, with an estimated investment of NOK 725 million. This is a significant milestone for the commercialization of our Just Catch technology", says Martinus Brandal, Aker Kvaerner's President &CEO and the incoming Board Chairman of Aker Clean Carbon.

In recent years, Aker Kvaerner and Aker have worked intensively on developing new CO2 capture technology. The main purpose of the new Kårstø plant is the development of construction methods and effective execution models that make carbon sequestration so inexpensive that it becomes cheaper to clean emissions than to pollute.

"We have come a long way. To advance further, we must prove that we are able to package technology in commercially attractive solutions. Through our company Aker Clean Carbon, we are helping to move carbon capture from a research and development phase into commercialization and sales," says Leif-Arne Langøy, Aker ASA Chairman and CEO.

Industrial facilities and power generation plants that obtain energy by burning fossil fuels such as oil, natural gas, or coal release huge volumes of carbon dioxide. On a global basis, the 4 000 largest plants in operation today are estimated to generate some 40 percent of CO2 releases to the atmosphere. In addition and on average, a new coal-fired power plant is completed each week in China.

"These plants worldwide constitute our future market. In just a few decades, building carbon capture facilities can become an industry similar to the building of oil platforms today. Our goal is to put Aker Clean Carbon at the forefront as this environmental industry matures," says Mr. Langøy.

Leif-Arne Langøy continues: "Aker finds it interesting to invest significant funds in such a project because both the market and potential for future value creation are great. In short, we see opportunities to make money by helping to solve the current climate crisis. Aker has the capacity and a willingness to take a long-term perspective in this matter."

More information

Information about the company: Akastor ASA