HOUSTON - A notable partnership between SLB and Aker Carbon Capture joint venture (SLB-ACC JV) and CO280 Solutions Inc. has marked a significant advancement in carbon capture technology with the award of a contract for the front-end engineering and design (FEED) of a large-scale carbon capture plant at a pulp and paper mill on the U.S. Gulf Coast.
The project aims to remove 800,000 tonnes of carbon emissions annually, furthering efforts to achieve negative emissions within the industry.
The North American pulp and paper sector presents an opportunity to capture up to 130 million tonnes of carbon emissions per year. By securing and storing these emissions, the industry could potentially reach a state of negative emissions, where more carbon dioxide is removed from the atmosphere than is emitted.
Egil A. Fagerland, CEO of SLB-ACC JV, highlighted the contract as a pivotal step in their ongoing partnership with CO280, which is focused on delivering scalable carbon capture solutions in North America. The FEED will lay the groundwork for a full-scale carbon capture facility, utilizing SLB-ACC JV's Just Catch™ 400 technology. This modular approach allows for the pre-fabrication of carbon capture units, which is already being applied in bioenergy, cement, and waste-to-energy sectors.
CO280's CEO, Jonathan Rhone, emphasized the importance of partnerships in achieving significant carbon removal before 2030. The collaboration with SLB-ACC JV is seen as vital in leveraging biogenic CO2 capture at pulp and paper mills to unlock carbon removal potential and expand the carbon dioxide removal (CDR) market.
This collaboration follows recent announcements of SLB-ACC JV and CO280's joint efforts to develop CDR projects in the United States and Canada and a partnership with Microsoft (NASDAQ:MSFT) aimed at enhancing the carbon removal value chain.
SLB, a global technology company listed on the New York Stock Exchange (NYSE: SLB), is committed to driving energy innovation and supporting the transition to balanced energy systems. The SLB-ACC JV specializes in carbon reduction and removal solutions, currently delivering seven carbon capture plants across various industries.
CO280 Solutions Inc. focuses on developing and operating large-scale carbon removal projects in partnership with pulp and paper companies, providing verifiable and affordable CDR credits for the voluntary carbon market.
This announcement is based on a press release statement and includes forward-looking statements subject to risks and uncertainties, such as achieving net-negative carbon emissions goals and realizing the anticipated benefits of new technologies and partnerships. These statements are based on current expectations and may change due to various factors.
In other recent news, Schlumberger (NYSE:SLB) Limited, a prominent entity in the energy sector, reported second-quarter earnings for 2024, exceeding expectations with an adjusted earnings per share (EPS) of $0.85. The company's earnings beat was attributed to stronger-than-anticipated margins, with the adjusted EBITDA margin reaching 25%. Internationally, Schlumberger's revenue growth exceeded 5% quarter-over-quarter across all regions, indicating a robust international market presence.
UBS reaffirmed its Buy rating for Schlumberger, maintaining it as a top pick in the Energy Services industry. Similarly, TD Cowen, RBC Capital, and Citi expressed confidence in the company, maintaining their respective buy ratings and price targets. These positive ratings followed Schlumberger's strong second-quarter performance and forward-looking strategies.
However, Schlumberger's proposed acquisition of ChampionX, valued at $7.75 billion, has been delayed due to a request for additional information from the U.S. Department of Justice. These are the recent developments in the company's operations. The company's focus on international markets and its success in meeting the needs of the oilfield services industry have been highlighted in recent analyst notes.
InvestingPro Insights
As SLB continues to pioneer in the energy sector with its latest venture into carbon capture technology, its financial metrics and market performance provide a broader context for investors. SLB is currently trading at a price-to-earnings (P/E) ratio of 15.68, which, when adjusted for the last twelve months as of Q2 2024, stands slightly lower at 15.0. This indicates a reasonable valuation in the context of the company's earnings. Additionally, SLB's commitment to innovation and sustainability is mirrored in its revenue growth of 12.68% over the last twelve months, showcasing the company's ability to expand its operations and increase its market share.
InvestingPro Tips highlight that SLB has maintained dividend payments for an impressive 54 consecutive years, reflecting the company's stability and reliability as an investment. This, combined with the fact that SLB operates with a moderate level of debt, presents a balanced financial profile for potential investors. It is also worth noting that analysts predict SLB will be profitable this year, an optimism that is backed by the company's profitability over the last twelve months.
Investors looking to delve deeper into SLB's financial health and future outlook can find additional InvestingPro Tips by visiting https://www.investing.com/pro/SLB. Currently, there are 19 more tips available, offering a comprehensive analysis that could be crucial for making informed investment decisions.
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