SLB will pay about $380 million to combine its carbon capture business with that of Aker Carbon Capture, acquiring a majority stake in the Norway-based company, the energy services giant said late March 27.

The move to accelerate and scale decarbonization efforts was taken amid continued global focus on reducing greenhouse gas emissions. Carbon capture, utilization and sequestration (CCUS) are expected to play an important role.

The companies plan to combine their technology portfolios, expertise and operations platforms, looking to bring carbon capture technologies to market faster and more economically, SLB said in a news release.

“For CCUS to have the expected impact on supporting global net-zero ambitions, it will need to scale up 100-200 times in less than three decades,” said SLB CEO Olivier Le Peuch said. “Crucial to this scale-up is the ability to lower capture costs, which often represent as much as 50%-70% of the total spend of a CCUS project.”

As part of the agreement, SLB will pay NOK 4.12 billion (about US$380 million) for an 80% stake in Aker Carbon Capture Holding. The company said it may pay up to NOK 1.36 billion (about US$125 million) more during the next three years based on the performance of the business.

In a note, Evercore analysts called the transaction a “significant addition to SLB’s already impressive carbon capture portfolio, amplifying its capacity to drive sustainable solutions in the global market and creating a comprehensive offering to handle mitigation efforts.”

The combination of technology portfolios and operating platforms could help lower capture costs, which Evercore analyst James West said is “a significant barrier to widespread adoption.”

Subject to regulatory approval, the transaction is expected to close by the end of second-quarter 2024.