SLB and Aker Carbon Capture joint venture awarded FEED contract by CO280 for large-scale carbon removal project

Rhea-AI Summary

SLB and Aker Carbon Capture's joint venture (SLB-ACC JV) has been awarded a front end engineering and design (FEED) contract by CO280 Solutions for a large-scale carbon capture plant at a pulp and paper mill on the U.S. Gulf Coast. The project aims to remove 800,000 tonnes of carbon emissions annually, delivering permanent, verifiable, and affordable carbon dioxide removals (CDRs).

The concept design is based on the SLB-ACC JV's modularized Just Catch™ 400 technology, enabling pre-fabrication of carbon capture units. This contract marks a significant milestone in the partnership between SLB-ACC JV and CO280 to deliver large-scale carbon capture solutions for North American industry, with the pulp and paper sector representing a carbon removal opportunity of up to 130 million tonnes per year.

Positive

• Contract award for FEED of a large-scale carbon capture plant
• Project aims to remove 800,000 tonnes of carbon emissions annually
• Potential to tap into a 130 million tonnes per year carbon removal market in North America's pulp and paper industry
• Collaboration with Microsoft to scale the full value chain of carbon removal in the US and Canada

Negative

• None.

Environmental Technology Expert

The announcement of a FEED contract for a large-scale carbon capture project at a U.S. Gulf Coast pulp and paper mill marks a significant step forward in industrial decarbonization efforts. With an ambitious target of removing 800,000 tonnes of carbon emissions annually, this project could set a new benchmark for the industry.

The use of the modularized Just Catch™ 400 technology is particularly noteworthy. This standardized approach could potentially accelerate deployment and reduce costs, addressing two major hurdles in the widespread adoption of carbon capture technology. The scalability of this solution could be a game-changer for the pulp and paper industry, which has a substantial carbon removal potential of up to 130 million tonnes per year in North America alone.

However, it's important to consider the challenges ahead:

• The economic viability of large-scale carbon capture projects remains a concern, particularly in terms of long-term operational costs.
• The infrastructure for CO2 transport and storage will need to be developed concurrently to ensure the captured carbon can be permanently sequestered.
• Regulatory frameworks and carbon pricing mechanisms will play a critical role in determining the project's success and potential replication across the industry.

Overall, this project represents a promising step towards achieving negative emissions in the pulp and paper sector, but its long-term impact will depend on successful implementation and the ability to overcome these challenges.

Financial Analyst

The FEED contract awarded to the SLB-ACC joint venture signifies a potentially lucrative opportunity in the growing carbon capture market. While specific financial terms weren't disclosed, such contracts typically represent a small fraction of the total project cost but can lead to more substantial engineering, procurement and construction (EPC) contracts if the project moves forward.

For investors, this development highlights several key points:

• The carbon removal market is gaining traction, with major tech companies like Microsoft actively participating in the value chain.
• The pulp and paper industry presents a significant untapped market for carbon capture technologies, with a potential of 130 million tonnes per year in North America.
• The modular approach of the Just Catch™ 400 technology could provide a competitive advantage in terms of cost and deployment speed.

However, it's important to note that the carbon capture industry is still in its early stages and profitability remains uncertain. The success of such projects heavily depends on factors like carbon pricing, government incentives and the development of a robust carbon credit market.

Investors should closely monitor the progress of this project and any subsequent EPC contract awards, as they could provide valuable insights into the commercial viability of large-scale carbon capture solutions in the pulp and paper industry.

Market Research Analyst

This FEED contract award signals a growing market opportunity in the carbon capture and removal sector, particularly within the pulp and paper industry. The collaboration between SLB-ACC JV, CO280 Solutions and Microsoft demonstrates a convergence of technology, industry and market demand that could accelerate the adoption of carbon capture solutions.

Key market implications include:

• The potential for rapid scaling in the carbon dioxide removals (CDRs) market, which could create new revenue streams for pulp and paper companies.
• Increased demand for modular and standardized carbon capture technologies, which could lead to cost reductions and improved accessibility for smaller industrial players.
• The emergence of cross-industry partnerships to develop full-value chain solutions in carbon capture and storage.

However, market growth faces several challenges:

• The need for substantial infrastructure development to support large-scale carbon transport and storage.
• Uncertainty in carbon pricing and regulatory frameworks across different regions.
• Potential competition from alternative carbon reduction technologies and methods.

The success of this project could serve as a proof of concept for the entire pulp and paper industry, potentially catalyzing a wave of similar projects. This could lead to significant market expansion for carbon capture technology providers and create new opportunities in the carbon credit trading market.

Carbon capture project aims to remove 800,000 tonnes of carbon emissions at a pulp and paper mill on the U.S. Gulf Coast

HOUSTON--(BUSINESS WIRE)-- Regulatory News:

(Photo: Business Wire)

The SLB and Aker Carbon Capture joint venture (SLB-ACC JV) today announced a contract award by its partner CO280 Solutions for front end engineering and design (FEED) of a large-scale carbon capture plant at a pulp and paper mill on the U.S. Gulf Coast. The project, which aims to remove 800,000 tonnes of carbon emissions annually, will also deliver permanent, verifiable and affordable carbon dioxide removals (CDRs).

North America’s pulp and paper industry represents a carbon removal opportunity of up to 130 million tonnes per year. By capturing and storing these emissions permanently, the industrial activity achieves negative emissions as more carbon dioxide is removed from the atmosphere than is being emitted from the process.

“This contract represents a key milestone in our partnership with CO280 to deliver large-scale carbon capture solutions for the North American industry,” said Egil A. Fagerland, chief executive officer, SLB-ACC JV. “We look forward to continuing our collaboration with CO280 and their pulp and paper partner to prepare for a full-scale carbon capture plant through the FEED.”

The concept design for the FEED of the carbon capture plant is based on the SLB-ACC JV’s modularized Just Catch™ 400, a standardized and modular technology that enables the pre-fabrication of carbon capture units. The JV is already delivering both Just Catch™ and Big Catch™ solutions to several industrial sites in the bioenergy, cement and waste-to-energy sectors.

“Partnerships are the key to removing megatons of carbon before 2030: We are proud of the partnerships we have established in both the pulp and paper industry and CDR markets and of our collaboration with the SLB-ACC JV as a key technology partner,” said Jonathan Rhone, chief executive officer, CO280. “By capturing and permanently storing biogenic CO₂ at mills, we can unlock a vast carbon removal opportunity in the pulp and paper industry and scale up the CDR market.”

This contract follows recent announcements by the SLB-ACC JV and CO280 on their collaboration to develop large-scale CDR projects in the United States and Canada pulp and paper industries and their collaboration with Microsoft to scale the full value chain of carbon removal in the United States and Canada by capturing and permanently sequestering biogenic CO₂ at pulp and paper mills.

About SLB

SLB (NYSE: SLB) is a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

About SLB and Aker Carbon Capture Joint Venture

SLB and Aker Carbon Capture Joint Venture is dedicated to carbon removal and reduction solutions. The company’s proven modular technologies enable industries to deploy capture technology at speed and scale, meeting the requirements of tomorrow and the opportunities of today. The company is currently delivering seven carbon capture plants to bioenergy, waste to energy, and cement facilities. Visit the SLB-ACC JV website.

About CO280

CO280 Solutions Inc. is a developer of large-scale carbon removal projects. In partnership with pulp and paper companies, we develop, finance, own, and operate carbon removal projects that deliver a new standard of permanent, verifiable, and affordable CDR credits to customers in the voluntary carbon market. Learn more at co280.com.

Cautionary Statement Regarding Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “can,” “estimate,” “intend,” “anticipate,” “will,” “potential,” “projected" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as forecasts or expectations regarding the deployment of, or anticipated benefits of, SLB’s new technologies and partnerships; statements about goals, plans and projections with respect to sustainability and environmental matters; forecasts or expectations regarding energy transition and global climate change; and improvements in operating procedures and technology. These statements are subject to risks and uncertainties, including, but not limited to, the inability to achieve net-negative carbon emissions goals; the inability to recognize intended benefits of SLB’s strategies, initiatives or partnerships; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the timing or receipt of regulatory approvals and permits; and other risks and uncertainties detailed in SLB’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731945651/en/

Media

Moira Duff – Director of External Communications

SLB

Tel: +1 (713) 375-3407

media@slb.com



Hanne Rolén – Head of Communication and Sustainability

SLB-ACC JV

Tel: +47 990 02 571

hanne.rolen@akercarboncapture.com



Investors

James R. McDonald – SVP of Investor Relations & Industry Affairs

Joy V. Domingo – Director of Investor Relations

SLB

Tel: +1 (713) 375-3535

investor-relations@slb.com

Source: SLB

FAQ

What is the carbon capture capacity of the SLB project on the U.S. Gulf Coast?

The carbon capture project aims to remove 800,000 tonnes of carbon emissions annually at a pulp and paper mill on the U.S. Gulf Coast.

What technology is SLB using for the carbon capture project?

The project is based on the SLB-ACC JV's modularized Just Catch™ 400, a standardized and modular technology that enables the pre-fabrication of carbon capture units.

What is the potential carbon removal opportunity in North America's pulp and paper industry?

North America's pulp and paper industry represents a carbon removal opportunity of up to 130 million tonnes per year.

Who awarded the FEED contract to SLB for the carbon capture project?

The FEED contract was awarded to the SLB and Aker Carbon Capture joint venture (SLB-ACC JV) by their partner CO280 Solutions.