AF Gruppen and Aker Solutions have signed a Letter of Intent (LOI) to merge the two companies existing offshore decom operations into a 50/50 owned company with the goal of creating a leading global player for environmentally friendly recycling of offshore assets. By establishing a pure, focused player dedicated to unleashing global decom potential, the parties will make a significant contribution towards a sustainable, green transition of the offshore sector. 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 UNs sustainable development goals (SDG) is to ensure sustainable consumption and production patterns. It is stated that urgent action is needed to decrease 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% for the structures for recycling, where the main component is metal. Reusing steel results in 70% 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 todays 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.