The combined entity will employ about 15,000 in more than 50 locations around the world
Aker Solutions has announced plans to spin off its offshore wind and carbon capture businesses to shareholders and merge the company with Kværner.
The structural and strategic changes are part of Aker Solutions’ efforts to transform the company and enhance shareholder value.
Aker Solutions will spin off its wind development business as well as the carbon capture technology business into two separate companies.
It will continue to an alliance partner and preferred supplier to both the spin offs that will named as Aker Offshore Wind and Aker Carbon Capture.
Currently, Aker Solutions has ownership stakes in ongoing offshore floating wind development prospects in the US and South Korea.
Since the mid-90s, the company has been developing carbon capture, utilisation and storage (CCUS) solutions, gaining a significant of its customers from outside traditional oil and gas markets.
Aker Solutions chairman Øyvind Eriksen said: “Aker Solutions has developed technology and taken strong positions in markets for offshore wind and carbon capture, utilization and storage.
“However, it has become increasingly clear that these businesses represent value creation opportunities in a world transitioning to green solutions at accelerated speed and have more potential as stand-alone companies than as an integrated part of an oil service business.”
Aker Solutions to merge with Kvaerner
Aker Solutions has entered into merger plan with Norwegian engineering and construction services company Kvaerner.
The merger will be based on the principle of equal parties and the combined company will be named as Aker Solutions ASA.
For many years, the two companies have been suppliers to oil and gas companies.
Aker Solutions said that the customers in the oil and gas market are looking for solutions with reduced environmental footprint.
According to the company, the combined entity is expected to have the required size and financial strength to compete in the growing market for renewable and sustainable energy.
Utilizing its global footprint in brownfield services and subsea, the merged company is anticipated to foray into international renewables markets.
In addition, it will carry out fabrication at own facilities or in cooperation with partners around the world.
The entity will employ about 15,000 in more than 50 locations around the world, with a presence in nearly 25 countries.
The combined company will be led by Kjetel Digre, who has been appointed as the new chief executive officer of Aker Solutions, effective 1 August 2020.
Kjetel Digre said: “The combined company will be a dedicated execution partner for delivery of complete projects for new energy production facilities, for example oil and gas production platforms or subsea systems, or offshore wind power installations.”