Jacobs to Deliver Strategic Advisory and Program Management Services for UK's Carbon Capture, Usage and Storage Program

Rhea-AI Summary

Jacobs (NYSE: J) has been appointed by the UK Department for Energy Security & Net Zero to provide technical project management support for the Carbon Capture, Usage and Storage (CCUS) program. This initiative is important for the UK's commitment to achieve a net-zero economy by 2050.

Jacobs will deliver technical project management, strategic and change management advisory services, data solutions, and risk and quality management. The contract has an initial term of two years, with the option to extend for up to two additional one-year periods.

The CCUS program aims to decarbonize industry, generate low-carbon energy, and enable large-scale low-carbon hydrogen production. It will create 'clusters' of industrial, power, and hydrogen projects around transport and storage infrastructure, facilitating the UK's industrial base's low-carbon transformation.

Positive

• Jacobs secured a contract with the UK government for the CCUS program
• The contract has potential for extension, indicating long-term business opportunity
• Jacobs will provide a wide range of services, showcasing its expertise in the field
• The project aligns with global decarbonization efforts, positioning Jacobs in a growing market

Negative

• None.

Insights

Energy Transition Expert

This appointment positions Jacobs as a key player in the UK's ambitious CCUS program, a critical component of the nation's net-zero strategy. The two-year contract with potential extensions highlights the long-term nature of this initiative. Jacobs' role in providing technical project management and strategic advisory services across CCUS, hydrogen and industrial carbon capture demonstrates the interconnected nature of these decarbonization efforts.

The focus on creating industrial "clusters" around transport and storage infrastructure is a smart approach to scaling CCUS efficiently. This could lead to significant opportunities for Jacobs in infrastructure development and integration of various low-carbon technologies. The collaboration with PA Consulting adds valuable expertise in technology and analytics, potentially enhancing the innovative aspects of the UK's CCUS deployment.

For investors, this contract reinforces Jacobs' growing position in the energy transition market, which is likely to see substantial growth as countries strive to meet their climate commitments. The project's scale and strategic importance to the UK government suggest it could lead to further opportunities in this sector, both domestically and internationally.

Market Research Analyst

This contract win is a significant positive for Jacobs, aligning with global trends towards decarbonization and energy security. The CCUS market is projected to grow substantially, with estimates suggesting a CAGR of over 15% in the coming years. Jacobs' involvement in this high-profile UK program could serve as a reference point for securing similar contracts in other countries pursuing net-zero goals.

The company's expanding portfolio in decarbonization projects, including work with BaroMar, Fortescue Future Industries and the ARCHES Hydrogen Hub, demonstrates a strategic focus on this growing sector. This diversification into emerging clean energy technologies could help offset potential declines in traditional engineering sectors.

Investors should note that while the immediate financial impact may be modest relative to Jacobs' $16.57 billion market cap, the long-term potential is significant. The contract's initial two-year term with extension options provides a stable revenue stream and positions Jacobs for future growth in the energy transition space. This aligns well with increasing ESG-focused investment trends, potentially enhancing Jacobs' attractiveness to sustainability-minded investors.

Supports U.K.'s decarbonization and energy security future

DALLAS, Oct. 3, 2024 /PRNewswire/ -- Jacobs (NYSE: J) has been appointed by the U.K. Department for Energy Security & Net Zero (DESNZ) to deliver technical project management support to the Carbon Capture, Usage and Storage (CCUS) program, an essential element of the U.K.'s commitment to deliver a net-zero economy by 2050.

CCUS will help decarbonize industry, generate low-carbon energy and enable low-carbon hydrogen production at scale. The program will facilitate the low carbon transformation of the U.K.'s industrial base by the creation of "clusters" of industrial, power and hydrogen projects around transport and storage infrastructure.

Jacobs will deliver technical project management, strategic and change management advisory services, data solutions and risk and quality management. Jacobs will also deliver associated strategic support to the Hydrogen and Industrial Carbon Capture program and provide advisory consultancy, end-to-end innovation, design and analytics with strategic partner PA Consulting (PA). For its part, PA will draw on its technology, design and analytics experience to ensure the U.K.'s approach to carbon capture is innovative and impactful.  

The contract with DESNZ is for an initial term of two years with an option to extend by up to two additional one-year periods.

"CCUS is an important enabler to the diverse mix of cross-market decarbonization and energy transition solutions needed to meet net-zero ambitions and enhance the U.K.'s energy security for the future," said Jacobs Senior Vice President Kate Kenny. "We bring technical and strategic program management experience across CCUS projects, critical infrastructure and whole energy systems as the CCUS program drives continued development and scaling in deployment."

Jacobs' global experience in the emerging CCUS market includes work on deep geological exploration, environmental consenting, design and major program management of complex, multi-stakeholder infrastructure projects. Jacobs' growing portfolio in decarbonization and energy transition includes delivering strategic route options for the U.K.'s National Gas, supporting BaroMar with a Long-Duration Underwater Energy Storage Pilot, collaborating with Fortescue Future Industries on its renewables and hydrogen projects, and as program manager for the ARCHES Hydrogen Hub in California. 

At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With a team of approximately 45,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we're creating a more connected and sustainable world. See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook.

Jacobs holds a 65% stake in PA Consulting, with the remaining 35% held by PA employees. Both Jacobs and PA operate as separate entities, each responsible for serving clients independently.

Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements including, but not limited to, uncertainties as to the impact of the recently completed separation transaction pursuant to which we spun off and merged our Critical Missions Solutions and Cyber & Intelligence government services businesses with Amentum  (together, "new Amentum ") on Jacobs' and new Amentum's businesses, the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation related to governmental spending, as well as general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets, the possibility of a recession or economic downturn, increased uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, among others, and the impact of any future pandemic or infectious disease outbreak, including the related reaction of governments on global and regional market conditions, among others. For a description of some additional factors that may occur that could cause actual results to differ from our forward-looking statements, see the discussions contained under Item 1 - Business; Item 1A - Risk Factors; Item 3 - Legal Proceedings; and Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recently filed Annual Report on Form 10-K, and Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations; Item 1 - Legal Proceedings; and Item 1A - Risk Factors in our most recently filed Quarterly Report on Form 10-Q, as well as the company's other filings with the Securities and Exchange Commission. The company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law.

For press/media inquiries:
media@jacobs.com 

 

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SOURCE Jacobs

FAQ

What is Jacobs' role in the UK's Carbon Capture, Usage and Storage program?

Jacobs will provide technical project management support, strategic and change management advisory services, data solutions, and risk and quality management for the UK's CCUS program.

How long is Jacobs' contract for the UK CCUS program?

The contract with the UK Department for Energy Security & Net Zero is for an initial term of two years, with an option to extend by up to two additional one-year periods.

What is the goal of the UK's Carbon Capture, Usage and Storage program?

The CCUS program aims to help decarbonize industry, generate low-carbon energy, and enable low-carbon hydrogen production at scale, supporting the UK's commitment to achieve a net-zero economy by 2050.

How will the CCUS program impact the UK's industrial base?

The program will facilitate the low-carbon transformation of the UK's industrial base by creating 'clusters' of industrial, power, and hydrogen projects around transport and storage infrastructure.