Aker ASA (AKER) Earnings Call Transcript & Summary

[Audio Gap] and Aker Horizons. I'll hand it over to Aker Horizon's CEO, Kristian Røkke, in just a moment, but first, a few logistics. [Operator Instructions] Following each company presentation of Aker Offshore Wind and Aker Carbon Capture, we will answer a few questions that have come in via the web. However, we will keep each Q&A session brief. Please make sure you include a valid e-mail address for us to follow up if we do not get to your question. Today's presentation session will conclude at 4:15 p.m. I'll now hand the word over to Kristian Røkke.

Welcome. Thank you for joining. It's a pleasure to host this webcast for Aker Offshore Wind and Aker Carbon Capture. Tomorrow is an important milestone, both companies will be listed and tradable on Merkur Market, with over 25,000 shareholders each at the outset. In advance of this milestone, we have attempted to share as much information as possible through company presentations online. And now we would like to give all stakeholders the opportunity to hear directly from the companies themselves. Before handing it over to Astrid, I'd like to provide some context for today's presentation. On July 17, Aker Solutions announced a number of structural changes, including the spin-offs of Offshore Wind and Carbon Capture with a clear proposition for value creation, namely, that each company has greater potential stand-alone, with Aker Solutions as an execution partner, rather than as an integrated part of a broader supplier. Now what's the basis for this proposition? Several reasons. But fundamentally, the opportunity sets for these 2 businesses, as we see it, are so large and distinct that they are best served with a singular focus. It's hard to overstate the momentum with which energy markets are shifting towards low carbon and renewables and the ability to play an important role in this for Offshore Wind and Carbon Capture will best be served, we believe, with dedicated organizations, dedicated Boards, independent value creation agendas and separate investor bases. Also announced on July 17 was the formation of Aker Horizons, a dedicated team with an aim to drive decarbonization on an industrial scale. The ambition for this team is to deploy capital and resources organically and through M&A towards this broader aim. Specifically, as it relates to Aker Offshore Wind and Aker Carbon Capture, Horizon's focus is to maximize value for each individual company through active ownership, drawing upon all available resources, providing a link to the entire Aker Group's capabilities such as industrial, software and financial capabilities, providing functional support to keep costs at a minimum in a start-up phase and also accelerating strategic development together with the respective Boards. Now since the announcement in July, each company has been recapitalized through private placements with gross proceeds of NOK 500 million each, providing both companies with a strong financial foundation for more ambitious business plans, which you will hear more about right now. Astrid?

Thank you. I have the pleasure of introducing Aker Offshore Wind. Aker Offshore Wind is established to develop and eventually operate Offshore Wind assets in deepwaters with the ambition to become an independent power producer as the industry matures. And with deepwaters, we mean acreage of 60 meters and deeper, that means mostly floating systems but also some deep bottom-fixed acreage. We're building on Aker's deepwater capabilities to drive industrialization and reduce cost, and you'll hear me talk a lot more about cost. Five decades of experience from complex deepwater projects executed by Aker in harsh environments and ultra deepwaters across the world allows us to effectively derisk project execution and project development. We tap into that vast capacity of experience in proven deepwater offshore technologies in our mission to drive down costs and optimize value. We also take an active ownership position in Principle Power, a leading provider of technologies for floating wind foundations. Aker Offshore Wind has already secured an early-mover position in what we believe are the most attractive regions going forward, and I'll talk more about the portfolio. With a majority shareholder with a track record of building successful companies, we're excited about the next step in our journey as a company. Renewable energy is expected to constitute about 60% of the global electricity production by 2050 and make up more than 30% of the global CO2 reductions by 2040. And certainly, wind power is expected to be a big part of this growth, and the benefits of Offshore Wind are becoming obvious. It is all about reliability and the capacity of Offshore Wind that is making it a baseload type of renewable source. And we see deepwater wind as the next revolution in renewable energy because the best wind resource is normally found further from shore where it is normally also deeper, and 80% of the world's offshore wind acreage is estimated to be at 60 meters and deeper. Using floating technologies, we can place the wind farm where the wind resource is best but also where conflicts with other users of the oceans are lower and minimize the environmental footprint. Our focus in this space are regions that have put in place a strong framework and are willing to invest in industrial development and energy transition. Governments in these regions set bold targets for energy transition and climate change but also have bold targets for the development of their supply chain. With an early-mover strategy, we will drive industrialization and development at scale in these regions to get costs down and at the same time, develop skills needed for the long run as the industry matures. We're setting up the company with all the capabilities needed to optimize the technical system: identify prospects, develop projects and lead project execution and optimize value creation throughout. In addition to that, Aker Offshore Wind can tap on Aker Solutions for offshore execution capacity, floater and mooring technologies of all types as well as subsea power systems. Also, Principle Power's wind float provides the most bankable floating foundation, with a pilot installed from 2011 to 2016 and 100 megawatts of floating production in the water by 2022, built in various pre-commercial farms. The latest of those is the 3x8.4 megawatt turbines commissioned this spring as a part of the WindFloat Atlantic project. At Aker, we're known as an early adopter of digital technologies, so also in Offshore Wind. Innovative use of software and data will be a key part of how we work on cost, and we can leverage the relationship with Aker software companies, Cognite and ix3. In Norway, electrification of the oil and gas production offshore is required to meet the Paris Agreement, and using Offshore Wind to do so can help create that early offtake needed to enable Offshore Wind farms in Norway. In turn, that can unleash an opportunity for the country to develop a new industry as well as redefine itself as an energy exporter. And with Aker BP in the family, this is a natural area of differentiation for Aker Offshore Wind. At Aker Offshore Wind, we focus on cost throughout in our operational model, lean, agile and light-footed, as well as in everything we do in the development of our projects in our industry. Let me talk a little bit about LCOE. LCOE, levelized cost of energy, for pilot scale floating projects is at approximately EUR 150 per megawatt hour, and that is where bottom-fixed Offshore Wind was 15 years ago. Our objective is to help push LCOE for deepwater wind down to EUR 50 per megawatt hour by 2030. And 2 things to remember about this: it is all about scale, and 70% of the CapEx costs are the same in bottom-fixed and floating wind, allowing floating wind to benefit from the cost reductions that have already happened in bottom-fixed. The exponential increase in turbine size is driving LCOE down because floating foundations can take the largest turbines and have an advantage compared with bottom-fixed as quayside assembly and toe-to-field of the turbines reduces offshore heavy lifts. And also, with the larger turbines, you get much more energy production. Aker Offshore Wind uses its capabilities to simplify the floating system, that means the floater, the mooring and power system. We standardize it, and we make it fabrication-friendly, incorporating local supply chains in the different regions. Also, remember that energy production is a key factor for LCOE, and so as floating wind can access better wind resource, the layout can be optimized to increase production that will move our target. We're currently developing a portfolio of early projects in some of the most attractive markets. We're evaluating the wind resource, the regulatory regime, the fiscal regime and Aker's presence and competitive advantages as we're looking for new opportunities. And today, we have a portfolio of development projects and prospects that, in total, can add up to 1.5 gigawatt net capacity, and that is what we're now focused on maturing up towards FID. We like to partner with other companies with complementary skill sets, and we have developed an effective working relationship with Ocean Winds, which is the JV between EDPR and Engie in both Korea and California, and we also have strong local partners in all regions. Starting with our activity in South Korea. South Korea has ambitious energy and industry transition agenda, with really bold Offshore Wind targets of 12 to 13 gigawatts and with Ulsan City as a strong industrial base and driver. We are a part of a consortium called KF Wind, and we hold a 30% stake in that. We're aiming to develop 500 megawatt of floating wind in the first stage with a potential of 1,500 megawatt total. Our consortium has 1 out of 5 MoUs with Ulsan City required to develop Offshore Wind in the area, and Aker has a strong brand name in Korea. We know the track record of the yards, and we know the capable local supply chain. In California, the world's fifth largest economy, a law was passed to be carbon-neutral by 2045, and Offshore Wind may be key to reach that target. We have developed projects since 2018, together with EDPR, now Ocean Winds, and we're working in the northern part of the state where the wind resource is simply the best. Our project is sized for the current grid capacity at 150 megawatt. The challenge for California is actually a weak grid infrastructure, but the potential is huge to grow Offshore Wind along an ultra-deep coast with large coastal urban areas. And this project has the potential to become a pioneer project for California. The Norwegian government has announced it will open 2 areas for Offshore Wind development, Utsira Nord and Sorlige Nordsjo 2, in January 1, 2021. One is deep and will be floating, and the other is likely a deep bottom-fixed area. The 2 areas are both attractive in terms of wind resource, and Norway has a capable offshore industry ready to transition. The offshore oil and gas production needs to see electrification, and the nation has a track record as a dependable energy exporter, all of which can be leveraged in the development of these offshore deepwater wind areas. We have prospects being developed for both areas, and we're targeting 500 megawatt for Utsira Nord and 1,200 megawatt in the first phase for the Sorlige Nordsjo 2 area. We see Scotland as another home market. To date, the U.K. has been leading the world in the development of Offshore Wind and has a mature bottom-fixed shallow water industry and framework. Scotland is targeting 10 gigawatts of Offshore Wind development, mostly floating, and we appreciate that the Scottish government has introduced a qualitative award regime, which favors offshore competence. Together with a partner, which we cannot disclose at this time, we're positioning for the upcoming lease rounds and targeting more than 500 megawatts of development in Scotland. Offshore deepwater wind is at the very beginning of its growth. We're at -- we are an early mover, and our portfolio is perfectly positioned at the front of the first wave of commercial scale floating deepwater projects. The value creation in this first phase is relatively the largest in percent as the projects get derisked and matured. The quantitative value creation is obviously largest as we get to execution and thereafter moving to operations. We believe we have the needed capabilities to create value along the full value chain, both short term and longer term. It is also exciting to see that deepwater wind is becoming the center of a future sustainable industrial system at sea, potentially playing a role together with hydrogen in providing green shipping and scaling aquaculture. In sum, the market for offshore deepwater wind is vast. We have the required deepwater expertise to scale and drive down costs, and we already have an attractive portfolio of prospects and projects. We now have a platform for further growth. We have a well-reputed majority shareholder in Aker Horizons. We have gone through a successful private placement. And we have more than 20,000 shareholders. Tomorrow, we will be trading on the Oslo Stock Exchange Merkur listing for the first time, and we have an ambition to move on to the Oslo Stock Exchange's main list. We are excited about our progress to date and hard at work on the next leg of the journey. Thank you.

Thank you, Astrid. Before we move on to Aker Carbon Capture, we will now take a few questions that have get -- come in through the web. Again, we'll follow up any additional questions after the conclusion of the presentation, that is if we don't reach your question during this short Q&A. The first question, Astrid, is whether Aker Offshore Wind has project capabilities or if Aker Solutions has to be responsible for project development.

So Aker Offshore Wind will have all of the key capabilities needed to set the strategic direction for technology deployment and project execution. Aker Offshore Wind will, however, further draw on Aker Solutions' capacity through a range of agreements that we have set up between the companies.

Great. The next question we have is on whether floating will lag behind if turbines grow.

On the contrary, we certainly believe that floating wind has an advantage over bottom-fixed wind as installation can be done quayside, and you will not have to depend on the right-sized, heavy-lift vessel for offshore installation. So for offshore deepwater wind, the larger the turbine, the better.

Great. And the next one we have goes as follows: you said that about 70% of costs are similar to bottom-fixed, and the residual 30% are known from oil and gas. How come?

Okay. So the turbine package, the export cable, the substation and the landfall, you should think about as basically the same thing, whether you're in floating or in bottom-fixed, and that constitute 70% of the cost. So the differentiating -- or the different elements are the floaters, which we certainly know very well from our 5 decades of work offshore for oil and gas; dynamic cables, also very well-known from oil and gas; and the mooring systems, which we also know well. So of the 30% that are different, it is -- this is technology and system solutions that we're very familiar with.

Okay. Great. We'll do one final question before we move on, and that is whether you can comment on the value of your PPI shares.

That is not public information, but I would like to say that Principle Power, PPI, is a key part of our strategy. We are an active owner of Principle Power, and we have, since 2017, increased our ownership from 5% to around 23% last winter. And when we welcomed Tokyo Gas into the ownership structure of Principle Power this spring, we were diluted to around 18%. We have, however, announced that we will be executing a third tranche in our shareholding agreement, and that will take us to around 20% at the end of the year, and we will continue to be an active and strong owner of Principle Power.

Great. I now want to welcome Valborg Lundegaard to give a company presentation of Aker Carbon Capture.

Thank you very much, and good afternoon to everyone listening in. It's a great pleasure for me to present Aker Carbon Capture, a company with a unique technology to reduce carbon emissions. Aker Carbon Capture is a pure-play carbon capture company, meaning that we will focus on this technology only, the customers in this segment and technology development in this segment and reducing development cost within carbon capture projects. And for you as investors, you know exactly what you are investing in, not a conglomerate of segments. Our proprietary technology is validated to over 50,000 operating hours and certified for several carbon capture applications by DNV GL. When our customers come to us, they really want to reduce their emissions. And by reducing the CO2 emission, they don't want to introduce new emissions or hazardous chemicals, and that is why our unique HSE characteristics are a commercial differentiator for us in the market. Aker Carbon Capture has a strong ESG profile. We provide clean air, clean energy, clean industry and indirectly, also good health, and we will have a sustainable governance model. In order to meet the goals of the Paris Agreement, a number of actions must be taken. Energy efficiency is one of them, important. Replacing fossil fuel with renewable energy is also very important. However, carbon capture, utilization and storage must also be included in order to meet these targets. IEA has estimated that in 2040, 9% of the reduction in CO2 emissions must come from CCUS, carbon capture, utilization and storage. 9% may not seem that much, but it corresponds to 2,400 million tonnes of CO2 per year and again, which is equivalent to 50x Norway's total CO2 emissions, which may be easier to understand. And this is a huge market, at least the potential is huge. We have a wide range of customers. It includes the industry sector with cement and steel producers, and energy sector with waste-to-energy plants, biofuels and fossil fuels. And if you look at the market on the slide here to the left, you see some examples from a number of waste-to-energy plants and cement plants in Europe, and there are actually 492 waste-to-energy plants in Europe only and 352 cement plants. And cement production alone represents 6% to 7% of the global CO2 emission. So the long-term market outlook is huge. However, we also have experienced ourselves that the market is moving now. And since April 2019, our product pipeline has grown from NOK 4 billion to NOK 16 billion, and that is from 19 to 87 opportunities that we have identified. As the name of the company Aker Carbon Capture indicates, carbon capture is the main focus, but we have extensive knowledge in the whole value chain of carbon capture, utilization and storage. If you look at the bottom of this slide, you see the value chain. And to the left, you see our core offering with carbon capture, liquefaction and intermediate storage. However, then you go to the -- further to the right, then you see transportation, further storage and then permanently storage. We start working with our customer in a very early phase, doing feasibility study and testing with our mobile test unit. We follow them when maturing the design and take on large EPC contract, and we will also ensure good service contracts with our customers for plant optimization and follow-up. I have to take you through the technology because that is really our competitive edge. My colleagues in Aker Carbon Capture hate this picture because it's such a simplification of what we actually offer, but it is a very simplified sketch of the Carbon Capture process. So to the left, you see the chimney or the absorber that we call it, and here, you see the flue gas coming up the chimney. Then it meets the amine solution where CO2 is binded, and then the closed loop of amine solution takes the CO2 with it, and the clean flue gas can go out on top of the chimney. On the right-hand side, in the closed loop, the solvent, the amine solution is heated and CO2 is released and can be compressed and liquefied and transported. So why is it so unique? It's unique because of the HSE characteristics. It's minimum emissions and liquid-based, and it's also energy-optimized. We have a number of trademarks and patents related to our technology, including an anti-mist system on top of the chimney or the absorber and a patented amine solvent. And let me share with you a little bit more about that, so that you can understand what I'm talking about. So the solvent program, which was a large R&D program, took place between 2008 and 2016, which was headed by Aker, where SINTEF, the large research institute in Norway, and the Norwegian Technical University also participated, really worked on optimizing the carbon capture project. During the program, we were challenged that we shouldn't only focus on the capture rate or the absorption rate. We should focus on the HSE characteristics of the process itself. We should not allow any emissions. And the program focus was, therefore, adjusted to achieve best-in-class HSE, in addition to excellent absorption. On top of the -- here, this slide, you can see some example from a test campaign we did in Germany on a refinery and coal flue gas. On top, you can see the standard amine solution. It degraded rapidly as it went through this closed loop. And you can see the change in color, up to 920 hours of operation. This will lead to less absorption, risk formation, corrosion and requirements for reclamation. At the bottom here, you see our proprietary S26 solvent. No change in color, even after 2,900 hours of operation. Unfortunately, I don't have a picture at 2,900 hours, but you'd have to take my word for it. We have tested this solvent on a number of plants. And when we tested at the Norcem cement plant in Norway, reclamation of the solvent was not necessary at all. The time for commercialization is now. Aker Carbon Capture has been awarded 2 important contracts, however, both pending government approval and funding. First one is the Heidelberg/Norcem cement plant, a large CO2 capture plant, our Big Catch concept, which is a stick-build contract, and a large capacity, 400,000 tonnes per year. On the right-hand side, you see another plant, the contract that we have been awarded by Twence, a waste-to-energy plant in the Netherlands. This is a modularized plant, Just Catch. And for this plant, the CO2 has been sold to a greenhouse. We expect both EPC contracts to start in January 2021. I would also like to share with you that both these contract has neutral cash flow, which really provides a flying start for Aker Carbon Capture. In order to deliver large EPC contracts, we certainly need the close cooperation with Aker Solutions, and we will benefit by Aker Solutions being our preferred partner in product execution. Aker Solutions has a long track record of successful delivery of complex projects. And we know them very well, of course, from oil and gas, but I also like to highlight the competence that Aker Solutions has in India, with a large engineering organization who has delivered a number of design solution to onshore plants. We will establish a number of frame agreements with Aker Solutions on publication, on engineering and just hiring of personnel. And already today, we benefit from our collaboration with Aker Solutions, with a number of people working already on our carbon capture studies. Many people believe that storage of carbon capture will be a bottleneck. There is some areas where we can utilize the CO2. I've already mentioned that from the Twence project in the Netherlands, the CO2 is sold to a greenhouse, and it could also be utilized for methanol production. However, for these large plants, like the Norcem plant, CO2 needs storage. And right now, there are a number of CO2 storage projects under development. Only in Northern Europe, we have 8 large storage projects. Northern Lights in Norway is one of them, but recently, we have also been contacted and been working with a storage project in Denmark, Greensand and in Ravenna in Italy. But in Norway, Northern Lights will be a breakthrough for carbon capture, utilization and storage. And on this figure to the left, you will see our Norcem plants with CO2 capture. We will capture CO2. We will liquefy and have intermediate storage. Then there will be transportation by ship and an intermediate storage on the West Coast of Norway before our pipeline and storage in a reservoir. The Northern Lights part of this, the infrastructure with transportation and story is a joint collaboration between the Norwegian government, Equinor, Shell and Total. Norway has played a leading role in development of the carbon capture technology, and it all started in 1996 with carbon capture and storage at Sleipner field. Sleipner was the first offshore CO2 storage field in the world. Aker delivered the Sleipner platform. The Aker Carbon Capture technology has been developed over 20 years, and Aker has invested over NOK 450 million in this development. In 2008, we built a mobile test unit, where our proprietary technology has been tested on 7 different flue gases or applications. I have already mentioned the important solvent R&D program, but that was really a key enabler for us taking this leading position in the market that we have today. Also, technology [ sent amongst ] was a project where Aker Carbon Capture learned a lot and further matured and developed our technology. We were the nominated supplier for the first U.K. carbon capture project, Longannet, in 2009. Unfortunately, the project was not realized. But now we are ready for commercialization with the Norcem and Twence contracts. Right now, there is high activity in the market. We have 18 ongoing initiatives. And what we see is that the new storage infrastructure project, like Northern Lights, will pave the way for a number of new carbon capture projects. And Northern Lights will open up for waste-to-energy plants in Stavanger, Bergen and Trondheim and across all of Northern Europe to store their CO2 there. We are currently looking at carbon capture at the Amager, a ski slope. It's a combined ski slope and waste-to-energy plant in Copenhagen, actually a quite fantastic setup. Copenhagen has an ambition to become the world's first capital to become carbon-neutral by 2025. We are also looking into new technologies like membranes for CO2 separation. And our MTU is currently in Sweden. MTU, a mobile test unit, is in Sweden, testing carbon capture at a hydrogen production plant at the Preem refinery in Lysekil. Today, carbon capture, utilization and storage development requires governmental funding. Our part of this, the economics, is the cost of carbon capture, and we are continuously working on reducing the cost of carbon capture through standardization, industrialization, technology development and learning by doing. Renewables technologies like solar and wind have demonstrated significant cost reduction. And by modulizing our medium-sized plant, Just Catch, we have been able to reduce the cost with 90% in the time from 2012 to 2019. Twence, which is a modularized plant and that can sell CO2, has lower carbon capture cost than Norcem. Norcem will be our first Big Catch plant, and we expect to learn a lot from this, and we will standardize and be able to reduce the cost for future plants like this. The other side of the economics is the carbon price. And here, we see varying national and regional pricing. And initiatives impact effective carbon price. And it's not only the ETS. There are special national tax, regional tax and fines. However, there is still a gap between cost of carbon capture and national and regional regulations. The time to close the gap will depend on the solution and the pricing of carbon capture, and we can see we are closer for Twence than for Norcem. Still, we believe that carbon capture is a good business even before breakeven. It is simply part of many of our clients' license to operate. They need to ensure the right ESG profile and company value. We've been out in the market, and we have now funding for further investment. In order to maintain our unique position when it comes to technology, we will have to continue to invest in technology development. We will invest in improving our current technology and reduce the cost of the carbon capture developments. We will develop new technology, including hydrogen production plants, and this is a very interesting area for us. EU, some weeks ago, launched their hydrogen strategy, and their main focus in the media was green hydrogen, but it was also announced from EU that the market for retrofit of existing hydrogen plants, so-called blue hydrogen, is EUR 11 billion until 2030, and this market is much too big for us to ignore. And with our presence now at the Preem hydrogen production plant in Sweden, we are positioning for this. We will also actively monitor technology outside our own company and see if there are opportunities for acquisitions. We have not included that in our strategy so far, but you should not be surprised if we come to the market again if we find interesting opportunities. So today, we've reached a key milestone and established a pure-play carbon capture company. And we have now 20,000 shareholders. And some of you might be listening right now and learn about the company for the first time, and it's going to be a pleasure to work with all of you in the future. We have raised NOK 500 million in successful private placement. And tomorrow, we will ring the bell at the start of trading and be listed on the Merkur Market. This is a milestone for us. For some of us, it's been a sprint. We worked a couple of months on this mission. Others have worked for 20 years to reach this moment, but we've all been important in reaching this milestone. There is an ambition to also be listed at Oslo Bors. So going forward, we will maintain our position, being the leading technology provider with the best-HSE-in-class characteristics. And in order to do so, we need to invest in technology development. So our ambition is to be #1 global carbon capture player in 2030. And what beyond that? Yes, there are opportunities beyond what we have presented so far. There will be new business model in this segment because it's an emerging market. There could be a market with carbon-capture-as-a-service, where we actually go to a meters and say, don't worry, we will handle the CO2 for you and then handle the carbon capture and then also find good utilization or storage solutions. So this is what I want you to remember from this presentation. We have a huge market potential. It's demonstrated to the long-term view but also to our recent high activity with a high number of studies and approaches we've had from our customers recently. We have a proprietary technology, which is unique with respect to HSE characteristics. The technology is validated and certified, and commercialization is happening now with these large contracts being awarded by the end of the year.

Thank you, Valborg. We'll take a few questions from the chat. As a reminder, we'll just follow up any additional questions after the conclusion of the presentation, and both companies have also launched websites where you can find more information. The first question we have is on how much CapEx and OpEx is as a percentage of the total project cost.

Well, that will vary a lot, of course, pending on the solution, whether it's a large stick-build plant or a modularized plant, but also on the excess heat available. And for Norcem, actually, there is excess heat available in the cement plant, which can be utilized in the carbon capture project. So for this -- for Norcem, the mix is 2/3 of the cost is CapEx, 1/3 is OpEx. For Twence, it's the other way around, 1/3 is CapEx, 2/3 is OpEx.

Okay. Now we have a question on what the competitive landscape looks like for Aker Carbon Capture.

Well, there are a number of small players in the market providing CO2 for soda drink producers. We are not competing with them because in this segment, the emissions are so small that our uniqueness on HSE is really not a commercial differentiator. So we are competing in the medium and large-scale plant segment. And here, our competitors are like Fluor in the U.S. and Mitsubishi in Japan, and also, we see Shell in U.K. I'd like to highlight to all of you that these are big companies and really, conglomerates. And if you want to invest in a pure-play carbon capture company, it's Aker Carbon Capture. And we also see that the uniqueness on HSE characteristics really can be demonstrated when our customers prequalify suppliers. We recently were just 1 of 2 prequalified carbon capture suppliers for a large client in U.K.

Great. We'll do one final question, and it's if you can give any details on how involved Aker Solutions will be going forward.

Yes. I think Aker Solutions is extremely important in our project delivery going forward, and we will now further detail out our delivery model together on, for instance, the Norcem project. And Aker's long-term presence on delivering these complex projects is so valuable to us. And I think this partnership can build on a lot of what we have experienced in an integrated working relationship also with another Aker company, Aker BP, with the Alliance Principles, where we make sure we create a win-win environment for both companies.

With that, we'll conclude the session. We want to thank you for joining us today and to take -- and also to take the opportunity to invite you back for the next virtual session on November 3, when both companies will provide a quarterly update. Have a great afternoon.