Norwegian engineering company 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.
In a statement on Wednesday, Aker Solutions said the oil and gas industry would remain Aker Solutions’ biggest market, but over the next decade the company would 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,” said Luis Araujo, chief executive officer of Aker Solutions.
According to the company, 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, Aker Solutions said.
In its updated enterprise strategy, Aker Solutions set out its growth ambitions within the energy industry and beyond. The company aims to derive 20 percent of its revenue from renewable energy and 25 percent from distinct low-carbon solutions by the year 2030.
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, utilization and storage (CCUS), subsea gas compression, electrification of production assets and unmanned platforms.
Aker Solutions noted it had developed and invested in renewable energy and low carbon solutions for many years.
The company has delivered or is involved in several projects in these segments.
Namely, Aker Solutions has taken a 23 percent 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 realize 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 utilized as a fertilizer.
Finally, the company is deploying its subsea expertise in the 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,” said Araujo.
“Our ambition is to become the recognized leader in low carbon offerings and sustainable solutions. We will achieve this through realizing our long-term ambition of 20/25/30.”
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