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Shares of Norwegian company Aker Carbon Capture could rise 65%, analysts say, as demand for emissions-reducing technologies grows. Aker Carbon Capture builds carbon capture and storage (CCS) plants with the aim of reducing emissions from industrial cement and steel plants. The company’s latest innovation, revealed last week, would reduce the energy needed to capture carbon and improve the company’s profitability in the future, according to Berenberg analysts. A typical CCS process is energy-intensive, but Aker’s new technology is expected to recycle internal waste heat and reduce the total energy needed by 10%, according to the German investment bank. “Clearly, an efficient solvent combined with optimal heat recovery can positively impact system economics and potentially accelerate industry scale-up,” Berenberg analysts said in a note. to customers on January 13. While Berenberg expects the stock to rise 49% to 20 Norwegian kroner ($2) from its current level of around 13.61 Norwegian kroner, the median price target of eight analysts compiled by FactSet puts its potential rally at 65% over the next 12 months. AKCCF 1Y Line The Oslo-listed company is building its first carbon capture plant on a cement plant that is expected to reduce emissions by more than 90%. The company says the captured carbon dioxide will be transported by ship and stored on the Norwegian continental shelf. Proponents of CCS believe the technology will play a key role in meeting climate goals, while critics say it is ‘inefficient, uneconomical and dangerous’, serving to prolong dependence on fossil fuels instead of switching to renewable alternatives. Aker Carbon Capture, listed on the stock exchange since August 2020, says it has already secured contracts that will remove up to 10 million tonnes of carbon per year from 2025, equivalent to the total emissions of 10 major cement plants. Berenberg analysts said Aker shares could also move following an expected announcement from the UK to build carbon capture plants. Although analysts said a large contract win was partially priced into the title. However, not everyone is optimistic about the title. Analysts at Norwegian investment bank Arctic Securities expect the stock to hold steady over the next 12 months. They say the company will remain around 30% below its carbon removal capacity target in 2025 even after potentially winning contracts awarded in the UK “We have revised our 2023-2025 revenue estimates downwards approximately 18-33% due to somewhat slower estimated order intake and conversion of backlog on new contracts,” Arctic Securities analyst Lukas Daul said in a note to clients on November 20. Aker Carbon Capture ADRs are also traded on OTC markets in the United States.
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