Aker Solutions and AF Gruppen join forces to create a leading company in offshore dismantling and recycling.
The two companies are thus contributing to the sustainable transition of this sector.
Aker Solutions and AF Gruppen support offshore recycling
Aker Solutions and AF Gruppen sign a letter of intent to merge the two companies’ existing offshore dismantling operations.
The aim is to create an equally-owned company that will become a key player in the environmentally-friendly recycling of offshore assets.
Amund Tøftum, CEO of AF Gruppen, comments:
“Our ambition is to establish a single recycling player, positioned to offer a total dismantling solution for the global offshore recycling market. Both parties have complementary strengths and capabilities, with the potential to build a global offshore recycling powerhouse. In addition, the new entity will meet the ecological and circular ambitions outlined in the United Nations Sustainable Development Goals.”
Towards circularity
Goal 12 of the UN Sustainable Development Goals aims to ensure sustainable consumption and production patterns.
It states that urgent action is needed to increase recycling and thecircular economy in order to reduce environmental impact.
Recycling steel makes a significant contribution to reducing GHG emissions, compared with ordinary steel production.
Objective 12 should therefore be achieved if old structures are now seen as material banks of precious resources.
Responding to a major societal challenge
The company aims to meet a major societal challenge by removing and recycling decommissioned oil rigs.
The unit aims to recycle as much material as possible from these platforms.
AF Offshore Decom (part of AF Gruppen) recently achieved a source separation rate of 94% for structures to be recycled, mainly composed of metal.
The reuse of steel reduces CO2 emissions by 70% compared with production from ore.
This corresponds to a reduction in emissions of 1 kg of CO2 per kg of recycled steel.
In 2020, AF Offshore Decom demolished and facilitated the recycling of around 22,000 tonnes of steel.
This corresponds to a reduction in CO2 emissions of 22,000 tonnes.
A promising partnership
The two companies offer unrivalled and complementary engineering and construction capabilities, both offshore and onshore.
Together, the two units bring extensive capabilities in the management of large-scale offshore projects.
They also benefit from life-cycle expertise, as well as a broad portfolio of customers and projects.
The company will have an order book of around NOK 2.5 billion (€240 million).
By joining forces on this project, Aker Solutions and AF Gruppen are responding to a major societal and ecological challenge.
Their transaction is expected to be finalized in the second half of 2021.
