SLB Records Major Loss Linked To Carbon Capture Project – Carbon Herald

SLB Reports Financial Loss in Carbon Capture Project Highlighting CCS Challenges

Global energy services company SLB has reported a significant financial loss related to one of its carbon capture and storage (CCS) projects. This development underscores the commercial and execution risks associated with large-scale CCS deployment, a critical technology aligned with the Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action) and SDG 9 (Industry, Innovation, and Infrastructure).

Financial Impact and Project Background

In its fourth-quarter financial results, SLB disclosed a “significant loss” on a project developed by SLB Capturi, a joint venture between SLB (holding 80%) and Aker Carbon Capture (holding 20%). The impairment led to a goodwill write-down of approximately $210 million related to this business unit.

SLB Capturi focuses on delivering carbon capture solutions for hard-to-abate sectors such as:

• Cement production
• Waste-to-energy
• Gas-to-power
• Biogenic emissions

This initiative supports SDG 7 (Affordable and Clean Energy) and SDG 12 (Responsible Consumption and Production) by promoting cleaner industrial processes and reducing greenhouse gas emissions.

Operational Progress Continues Despite Financial Setback

Despite the financial impairment, SLB Capturi is actively expanding its project portfolio across Europe, demonstrating commitment to advancing sustainable industrial practices.

Key Projects Supporting SDGs

1. Denmark – Ørsted’s Bioenergy Facilities
   SLB Capturi is delivering five modular capture units at Ørsted’s bioenergy plants in Kalundborg, aiming to remove up to 500,000 tons of CO2 annually. This project contributes directly to SDG 13 (Climate Action) by mitigating carbon emissions from renewable energy sources.
2. Norway – Brevik Cement Plant
   Completion of the world’s first full-scale carbon capture facility integrated into a cement plant enables Heidelberg Materials to capture up to 400,000 tons of CO2 per year. This supports SDG 9 (Industry, Innovation, and Infrastructure) and SDG 13.
3. Norway – Hafslund Celsio Waste-to-Energy Plant
   Deployment of capture technology with a capacity of approximately 350,000 tons of CO2 annually enhances sustainable waste management practices, aligning with SDG 11 (Sustainable Cities and Communities) and SDG 13.
4. Netherlands – Twence Waste-to-Energy Facility
   Commissioning of a carbon capture system at Twence’s facility in Hengelo designed to capture around 100,000 tons of CO2 per year further supports circular economy principles and SDG 12.

Sector Challenges and Future Outlook

While the impairment highlights the financial hurdles in scaling CCS infrastructure, SLB’s expanding project footprint indicates ongoing momentum in commercial deployment. Industry experts note that many CCS projects remain first-of-a-kind developments with elevated technical complexity and cost risks.

This dual reality reflects the broader challenges faced by the CCS sector, including:

• Cost control difficulties
• Delivery and execution risks
• Long-term commercial viability concerns

Addressing these challenges is essential for achieving the SDGs related to climate action and sustainable industry transformation.

Additional Resources

• SLB Capturi and JGC to Expand Carbon Capture in Asia and Middle East
• SLB Wins Contract to Support Carbon Storage for UK East Coast Cluster

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses carbon capture and storage (CCS) projects aimed at reducing emissions from energy-intensive sectors, contributing to cleaner energy solutions.
2. SDG 9: Industry, Innovation and Infrastructure
   • Focus on deploying innovative carbon capture technologies and infrastructure in cement, waste-to-energy, and bioenergy sectors.
3. SDG 13: Climate Action
   • Efforts to reduce CO2 emissions through CCS projects directly support climate mitigation actions.
4. SDG 12: Responsible Consumption and Production
   • By targeting emissions from waste-to-energy plants and cement production, the projects promote sustainable industrial processes.

2. Specific Targets Under Those SDGs Identified

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
2. SDG 9: Industry, Innovation and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
3. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning.
4. SDG 12: Responsible Consumption and Production
   • Target 12.4: Achieve environmentally sound management of chemicals and all wastes throughout their life cycle.

3. Indicators Mentioned or Implied to Measure Progress

1. CO2 Capture Capacity (tons per year)
   • The article specifies CO2 capture capacities for various projects, e.g., 500,000 tons annually at Ørsted’s bioenergy facilities, 400,000 tons at the Brevik cement plant, 350,000 tons at Hafslund Celsio’s waste-to-energy plant, and 100,000 tons at Twence’s facility. These figures serve as quantitative indicators of progress.
2. Number and Scale of Operational CCS Projects
   • Expansion of project portfolios and commissioning of new capture units indicate progress in deployment and infrastructure development.
3. Financial Performance and Investment in CCS
   • Financial losses and impairments highlight commercial risks and can be used as indicators of economic viability and investment trends in CCS technologies.

4. Table: SDGs, Targets and Indicators

Source: carbonherald.com