AF Gruppen and Aker Solutions join forces to create a leading global offshore decommissioning and recycling company

“Our ambition is to establish a unique recycling player, positioned to offer a total decommissioning solution for the global offshore recycling market. The two parties have complementary strengths and capabilities, with potential to build a global offshore recycling powerhouse. Furthermore, the new entity will deliver on the green, circular ambitions outlined in the UN’s sustainable development goals,” said Amund Tøftum, CEO of AF Gruppen.
“By combining Aker Solutions’ offshore, engineering and project execution capabilities with AF Gruppen’s decommissioning and construction capabilities, we aim to increase customer efficiency throughout the decommissioning process and maximize the total recycling potential. The company will be uniquely positioned to offer integrated end-to-end services from well plug and abandonment to planning, removal, dismantling and recycling at its own environmental base. Sustainability and circular economy ambitions will be key focus areas for the new entity, and we see increased activity in the market for decommissioning and recycling moving forward,” said Kjetel Digre, chief executive officer of Aker Solutions.
A roadmap to circularity
The recycling of steel from decommissioned oil platforms represents a significant contribution to reducing greenhouse gas emissions compared with ordinary steel production. Goal 12 in the UN’s sustainable development goals (SDG) is to ensure sustainable consumption and production patterns. It is stated that urgent action is needed to decrease our reliance on raw materials and increase recycling and “circular economy” approaches to reduce environmental pressure and impact. These goals will be met by viewing old structures as material banks of dynamic and valuable resources, rather than fixed and final objects.
Solving a significant societal challenge
The business concept is based on solving a significant societal challenge by removing and recycling decommissioned oil platforms. The unit aims to recycle as much of the materials from the decommissioned offshore platforms as possible. In recent years, AF Offshore Decom has achieved a source separation rate of 94 per cent for the structures for recycling, where the main component is metal. Reusing steel results in 70 per cent less CO2 emissions than ore-based production, which corresponds to an emission reduction of 1 kg CO2 per kilo of recycled steel. In 2020, AF Offshore Decom demolished and facilitated the recycling of approximately 22,000 tonnes of steel, corresponding to a reduction of alternative CO2 emissions of 22,000 tonnes.
Global reach based on Norwegian competence
Decommission of the offshore market has a vast untapped potential globally, with approx. 10,000 operational platforms. The North Sea alone holds a significant potential with expectancy of more than 900,000 tonnes of top deck to be removed during the period from 2020 to 2029. This applies to the British, Norwegian, Danish and Dutch sectors. Based on today’s current annual decommissioning spend, it implies that it will take operators approx. 100 years to deplete liabilities for current assets. Thus, a further ramp up of pace is necessary, leading to a positive contribution to the demand for this type of services.
Superior execution power and capabilities
The two companies represent unmatched and complementary engineering and construction capabilities at land and at sea. Jointly, the two units brings extensive capabilities in running large-scale offshore projects, lifecycle and value chain competence and a broad global portfolio of customers and projects. The joint company will have an order backlog of approximately NOK 2.5 billion.
The transaction is expected to be completed during the second half of 2021 and is subject to due diligence and regulatory approvals by the Norwegian Competition Authorities (NCA).
Contacts
Amund TøftumCEO
Tel:+47 920 26 712Amund.Toftum@afgruppen.noKnut Ekern
VP Communications
Sverre HæremCFO
Tel:+47 952 45 167sverre.herem@afgruppen.noImages

About AF Gruppen ASA
AF Gruppen is a leading contracting and industrial group that was formed by an entrepreneurial spirit and execution capabilities. The group has 5,500 employees and revenue reached NOK 27 billion in 2020. AF Gruppen is listed on Oslo Stock Exchange (AFG).
We provide a broad range of services with seven operational business areas: Civil Engineering, Building, Betonmast, Property, Energy and Environment, Sweden and Offshore.
Subscribe to releases from AF Gruppen ASA
Subscribe to all the latest releases from AF Gruppen ASA by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from AF Gruppen ASA
Constructing a new wastewater treatment plant in Sweden4.7.2025 14:49:02 CEST | Press release
AF Gruppen’s subsidiary, Kanonaden Entreprenad Mälardalen AB, will, in collaboration with ByggDialog AB, construct a new wastewater treatment plant in Gävle for Gästrike Vatten. Kanonaden’s share of the contract involves groundwork, foundation works, and pipe installations, with a contract value of approximately SEK 500 million excluding VAT.
New building project at the Oslo police headquarters4.7.2025 07:30:00 CEST | Press release
AF Gruppen has been awarded a collaborative contract by Statsbygg for the construction of a new building adjacent to the police headquarters at Grønland in Oslo. The project includes development and approximately 7,000 square metres of new premises, connected to the existing police facilities. It will house areas with specialised requirements as well as standard office space.
Upgrades smolt facility2.7.2025 11:00:00 CEST | Press release
Helgesen Tekniske Bygg AS (HTB), a company within AF Gruppen, has signed a turnkey contract with a fish farming company for the upgrade of a smolt facility in Western Norway. The contract value is approximately NOK 160 million, excluding VAT.
Building production facility in Ølen30.6.2025 15:00:00 CEST | Press release
Helgesen Tekniske Bygg AS (HTB), a company within AF Gruppen, has signed a turnkey contract with Øvrehagen 2 AS for an extension to Fatland Ølen’s production facility in Ølen. The contract value is NOK 213 million excluding VAT.
Awarded contract from Forsvarsbygg23.6.2025 08:05:00 CEST | Press release
Helgesen Tekniske Bygg AS (HTB), a subsidiary of AF Gruppen, has received a contract award notification from Forsvarsbygg for the construction of a building as a turnkey project. The assignment will have a value of NOK 158 million excluding VAT.
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom