Press releases

12.07.2022

Aker Horizons ASA: Second-Quarter and Half-Year Results 2022

Aker Horizons ASA (OSE: “AKH”), a developer of green industrial projects and technologies that accelerate the net zero transition, today announced results for the second quarter and first half of 2022. The company’s Net Asset Value (“NAV”) rose to NOK 17.4 billion in the three months to 30 June 2022, from NOK 17.0 billion at the end of the previous quarter.

Second-quarter highlights:

· Merging Aker Horizons with Aker Clean Hydrogen, establishing a hybrid asset origination and development muscle
· Merging Aker Horizons with Aker Offshore Wind (AOW) to make way for combination of AOW and Mainstream Renewable Power to leverage complementary footprint and capabilities, increased scale and improved access to financing
· Mitsui investing EUR 575 million in Mainstream and joining Aker Horizons as long-term strategic investor in the company
· Aker Horizons selling all its shares in REC Silicon to Hanwha for total proceeds of NOK 1,840 million
· Continuing to make industrial progress across the portfolio, including establishing partnerships with Nordkraft to develop sites for power intensive-industries in Northern Norway
· Strengthening the financial position to end the quarter with NOK 9.6 billion in available liquidity

“The first half of 2022 was characterized by a high degree of market volatility and geopolitical uncertainty. War returned to Europe, compounding the supply chain disruptions caused by the COVID pandemic, and sending energy prices soaring. The world is now facing the challenging balancing act of ensuring energy affordability, energy security and the transition to carbon neutrality,” said Kristian Røkke, CEO of Aker Horizons.

“There is a growing understanding that accelerating the transition to a renewables-based energy system is the only viable answer to the current crisis. The EU and national governments alike are taking decisive action to reduce dependency on fossil fuels. Key technologies such as hydrogen, CCUS and offshore wind are on the rise. Aker Horizons’ portfolio composition and financial position enable us to seize opportunities to further grow and extend the business.”

Aker Horizons’ NAV increased to NOK 17.4 billion in the second quarter, up from NOK 17.0 billion in the first quarter, with the increase driven by the merger of Aker Horizons, Aker Clean Hydrogen and Aker Offshore Wind.

Portfolio Highlights

Plans to combine Aker Offshore Wind and Mainstream to create a stronger renewable company with a 27 GW portfolio across solar, onshore wind and bottom-fixed and floating offshore wind projects progressed during the quarter. In July, shareholders of Mainstream and Aker Offshore Wind entered into an agreement to combine the two companies in a transaction that is expected to close in August 2022.

Mainstream commercialized its first development in Colombia by signing a 15-year power purchase agreement (PPA) to supply 180 GWh of clean energy annually to a regional energy distribution company. Mainstream will build a 100 MW solar PV plant in northern Colombia.

Aker Offshore Wind and Ocean Winds signed a joint development agreement with East-West Power (EWP), a state-owned power generation company in Korea, as a first step toward a final investment decision.

Aker Carbon Capture and a consortium of Aker Solutions, Siemens Energy and Babcock secured a FEED contract for the Keadby 3 gas power plant with integrated carbon capture, which has the potential to capture up to 2 million tonnes of CO2 per year. The company also progressed work on the FEED for BP’s Net Zero Teesside gas power facility, with a project capacity to capture and store about 2 million tonnes of CO2 per year.

In the Netherlands, construction of the CCU project at Twence’s waste-to-energy plant commenced, while in Norway, the first deliveries to the world’s first carbon capture plant at a cement facility in Brevik were made.

Aker Clean Hydrogen merged with Aker Horizons in June 2022, becoming Aker Horizons Asset Development. The new setup strengthens Aker Horizons’ capabilities to originate, develop and operate large-scale hybrid decarbonization projects to decarbonizing energy-intensive, hard-to-abate industries such as steel, shipping and fertilizers. The initial focus is on hydrogen, ammonia and methanol, and green iron.

In Narvik, Aker Horizons plans to establish a green industrial hub, benefitting from attractive infrastructure and power prices in northern Norway. In May, Aker Horizons established a joint venture with Nordkraft to develop sites for power-intensive industries.

For the Rjukan hydrogen hub, Aker Horizons completed the engineering work for concept selection during the quarter, maturing the project toward an investment decision in 2023.

Looking further abroad, Aker Horizons and Statkraft agreed to explore opportunities for green hydrogen and ammonia production in India and Brazil, targeting local steel and fertilizer industries.

ENDS

The Q2 2022 presentation and first-half 2022 report are attached.

Aker Horizons’ CEO Kristian Røkke, CFO Nanna Tollefsen, Asset Development’s CFO Kristoffer Dahlberg and Mainstream’s CEO Mary Quaney will present the main developments in the first half 2022 today at 08:30 CEST followed by a Q&A session. The presentation, which is open to all, will be held in English and will be webcast on the following link: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220712_3

For further information, please contact:

Ivar Simensen, Communications, Tel: +47 46 40 23 17, ivar.simensen@akerhorizons.com

Christian Yggeseth, Investor Relations, Tel: +47 91 51 00 00, christian.yggeseth@akerhorizons.com

About Aker Horizons

Aker Horizons develops green industrial projects and technologies that accelerate the net zero transition. The company holds assets across renewable energy and carbon capture, and develops green industrial hubs that combine low -cost renewable energy with hydrogen production and downstream applications. As part of the Aker group and its 180-year industrial heritage, Aker Horizons applies industrial, technological and capital markets expertise to solve fundamental challenges to sustainable existence. Aker Horizons is listed on the Oslo Stock Exchange and headquartered in Fornebu, Norway. Through its portfolio companies, Aker Horizons employs over 1,200 people across 18 countries and five continents. www.akerhorizons.com

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements in Regulation EU 596/2014 and the Norwegian Securities Trading Act § 5-12. This stock exchange announcement was published by Ivar Simensen, Communications, Aker Horizons, on 12 July 2022 at CEST 07:00.