SB1: Engineering study for cement plant owned by Holcim Group
CAPSL just announced that the company has been awarded an engineering study for a planned carbon capture plant at one of Holcim Group’s UK cement plants. The contract covers input for a feasibility study, along with possible further pre-FEED engineering.
Holcim Group is the world’s largest cement producer, and could be a key client to CAPSL. This particular plant is part of the Peak Cluster, which aims to have carbon storage operations up and running from 2030. Hence, we would expect FID for the project to be taken around 2027, at which point a technology licensing contract could be awarded. If CAPSL wins this contract, we would expect a license fee of around NOK ~70m, with little to no incremental opex.
While Holcim Group is probably evaluating several different carbon capture technologies, we note that Petrofac is the company’s engineering partner in the UK. Petrefoac knows CAPSL’s technology well, having conducted a FEED study for Stockholm Exergi based on CAPSL’s technology.