Norwegian contractor Aker Solutions and engineering and construction company Doosan Babcock have agreed to jointly deliver projects for low-carbon solutions and renewable energy in the UK.

The duo will particularly focus on pursuing contracts for new hydrogen production plants and facilities for carbon capture, utilisation and storage (CCUS).

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The combination, Aker Solutions said, will enable a full engineering, procurement, construction and installation solutions for the UK’s energy transition agenda.

The UK this week announced its North Sea Transition Deal, a pledge by industry and the government to jointly invest up to £16 billion (US$22 billion) by 2030 to reduce carbon dioxide emissions.

The initiative includes £3 billion on CCUS and up to £10 billion to help hydrogen production.

Most exciting projects

"This strategic agreement enables both companies to work together in a highly integrated manner to pursue some of the largest and most exciting low-carbon projects in the UK," said Andrew Colquhoun, Doosan Babcock chief executive.

"Our complementary capabilities will ensure a highly attractive offering for our customers."

The companies will also explore other projects within the process and energy industries.

Aker Solutions on Thursday revealed the companies have signed a memorandum of understanding and established a team with key people from both organisations.

"This is also an important step for our objective to grow within projects related to the energy transition, and for our strategy to establish business models with solid partners where this can add value," said Aker Solutions chief executive Kjetel Digre.

He added that Aker Solutions would maintain its “already strong position within the oil and gas market, and in parallel grow within low-carbon solutions and zero-emission energy projects”.

New projects

“We are already a key contractor for the world's largest full-scale carbon capture and storage project [Equinor's Northern Lights project] and we are currently engaged in early-phase work for customers with plans for new hydrogen projects.

“Built on the established expertise and capabilities we have, we see exciting opportunities to build more industrial activities in the UK," said Digre.

Aker Solutions has been awarded a contract by Equinor to delivering the new CO2 receiving facilities for Northern Lights outside Bergen, Norway.

The contractor has also been tasked with delivering the subsea equipment for injecting captured CO2 into a reservoir for permanent storage.

Northern Lights is part of the Norwegian government’s Longship project for establishing full scale CO2 capture, transport and storage facilities in line with the country’s international climate agreements.