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A Ray of Sunlight for Renewable Energies
A Ray of Sunlight for Renewable Energies

Monthly deal round-up, November 2022- Renewable Energy & Oil and Gas, by Wesley Johnson I hope that you are having a happy holiday season and that your year ahead will be your best one yet. 🎉 November’s deal round-up and market trends could not be more transparent than the ocean surrounding Fulhadhoo island in the Maldives. Funders continue to deploy their mandates into sunnier and windier shores, whilst the super majors are driving their 16-wheelers around looking to offload some of their assets to spare some green capital. IEA’s World Energy Investment report back in June predicted that global energy investments will exceed $2.4 trillion in 2022, and new investments in renewable energy reached a record half-year of $226 billion in H1 of 2022 according to BloombergNEF’s Renewable Energy Investment tracker. The super majors continue ramping up their energy transition initiatives as they seek to divest their assets in favour of alternative energies. For example, in recent weeks, TotalEnergies divested 60% of its operating interest in the Dunga oil field in Kazakhstan to focus more on its renewable energy developments in the country and signed an agreement to develop the largest wind energy project initiated in Kazakhstan known as the Mirny project. Shell has been shedding its more carbon-intensive assets this year, selling its refinery in Washington state to Holly Corp, its stake in a Houston area refining joint venture to Petroleos Mexicanos, and its recent exit from the Permian Basin as it shifts its focus to renewables and power. Furthermore, Shell and ExxonMobil have agreed to sell their joint venture, Aera Energy which includes more than 23000 wells in California to IKAV for an estimated $4 billion. This comes at a time when ExxonMobil have also ramped up their efforts to focus on, low-cost-of-supply oil and natural gas to maximize profits and free up some capital to deploy into lower carbon assets. Conversely, a few energy independents are capitalising on some of these exits mentioned above, as they seek to benefit from surging global oil and gas prices due to market disruptions fuelled by Russia’s invasion of Ukraine. Examples include the likes of UK energy explorer Waldorf, seeking up to $2 billion for M&A opportunities, and Marathon Oil recently snatching up on Ensign’s Eagle Ford assets in the US for $3 billion. And in Germany’s latest move to secure alternative energy supplies away from Russia, they recently signed a $3 billion deal with trading firm Trafigura for them to supply gas to Europe over the next 4 years. This illustrates the latest move by commodity traders to try and help Germany secure resources. Further details about the above-mentioned energy deals including many more for November can be found in my monthly deal round-up below. 👇

Renewable Energy Deals

  • UK’s Lightsource to invest $3 billion to develop 3 GW of power generation in India
UK-based project developer Lightsource has announced its expansion into India’s rapidly growing solar market with an investment of $3 billion to develop 3 GW’s of power over the next 5 years. Read more  
  • Solar Energy Corporation of India has signed PSA’s for 1 GW of wind projects
SECI has signed power sale agreements for 1-GW of wind projects tendered in the country’s second wind power auction. Winners in the tender included; ReNew Power, Orange Sironj, Inox Wind, Green Infra and Adani Green. Read more  
  • Brookfield signs 600MW deal with Amazon
Brookfield Renewable will provide more than 600MW of clean wind and solar energy capacity to power Amazon’s operations in Europe, North America and India. Read more  
  • Orsted aims to launch a $518.6 million offering of green securities
Orsted plans to launch a $518.6 million offering of green hybrid capital securities, seeking to raise funds for new renewable energy investments. Read more  
  • Qualitas Energy raises $1.13 billion for fifth flagship fund
Qualitas Energy, a Spanish private equity firm specialised in renewable energy investments, reached the first close of its fifth flagship fund with more than $1.1 billion. Fund V primarily focuses on furthering renewable technologies across Europe and in particular, Germany, the UK, Spain, Italy and Poland. Read more  
  • AMEA Power completes $1.1 billion solar and wind deal
The 500MW wind and 500MW solar projects, represent $1.1 billion of investment into the Egyptian economy and takes the company’s clean energy portfolio to 2GW in the country. The project is been financed by IFC, FMO and JICA. Read more  
  • KORE Power raises $75 million to build gigafactory
Kore Power has announced its successful capital raise of $75 million of its $150 million investment round with Siemens as the lead investor and joined by Quanta Services. Kore intends to use the proceeds of the funding round to commence the construction of its KOREPlex gigafactory. The KOREPlex will be amongst the first U.S. Battery cell gigafactory built independently of an automotive OEM. Read more  
  • Leeward Secures financing for 296MW of solar PV projects in the US
Leeward Renewable Energy has received around $420 million in construction-to-term financing from MUFG Bank for its Big Plain solar facility in Ohio. Furthermore, Leeward has also secured a $195 million tax equity commitment from Wells Fargo for its Oak Trail solar project in North Carolina. Read more  
  • The UK Government has awarded $39.7 million in funding to five innovative energy storage projects
The Department for Business, Energy and Industrial Strategy (BEIS) has awarded a total of $39.7 million to five innovative energy storage projects for the second phase of its longer-duration energy storage competition. Through this funding incentive, the UK hopes to encourage cutting-edge innovative storage technologies that can help increase the resilience of the UK’s electricity grid whilst maximising value for money. Read more  
  • Solarise Africa has raised a $33.4 million debt facility
Solarise Africa which offers energy as a service to businesses in Africa has raised a $33.4 million debt facility to solidify its position in the commercial and industrial solar market in Kenya and augment its activities across Africa. Read more

Oil & Gas Deals

  • Trafigura signs $3 billion loan to supply Germany’s Sefe
Trading firm Trafigura Group has signed a $3 billion German-backed loan to supply gas to Europe over the next 4 years. This is German’s latest move to secure an alternative supply away from Russia. Read more  
  • ExxonMobil sells Santa Ynez field in California to Sable Offshore for $643 million
Flame Acquisition Corp, a Houston-based SPAC (Special Purpose Acquisition Company) has agreed to buy the Santa Ynez oilfield from ExxonMobil. The business will be renamed Sable Offshore. The Santa Ynez oilfield consists of 3 offshore platforms located 12 miles off the coast near Santa Barbara and an offshore processing facility at Las Flores Canyon. This deal comes at a time when ExxonMobil looks to shift its investment strategy into less costly and emission-intensive assets. Read more  
  • TotalEnergies sells 60% interest in the Dunga oil field to Oriental Sunrise Corp Ltd for $330 million
Total Energies has agreed to sell 60% operating interest in the Dunga oil field in Kazakhstan to a Kazakh company. Oriental Corp Ltd. For $330 million while strengthening its presence in renewable energy in the country. In addition to its two solar power plants in operation in Kazakhstan, Total signed an agreement to develop the Mirny project, the largest wind energy project ever initiated in Kazakhstan with a total of 1 GW installed capacity Read more  
  • Total Energies sells its fuel retail business in Mauritania to Akwa Africa for $185 million
North African, Akwa Group is set to acquire Total Energies fuel retail business in Mauritania. When concluded it will see Akwa Energy acquire roughly 40 branches operated by Total in the country. Read more  
  • KKR seeking buyers for Canadian gas producer Westbrick Energy
KKR is looking to sell Canadian oil and gas producer Westbrick Energy Ltd to capitalise on higher energy prices, in a potential deal valued at around $1.13 billion to $1.5 billion. Read more  
  • Diamondback Energy has acquired Lario Permian for $1.5 billion
This deal comes shortly after Diamondback Energy said it would acquire all interests and assets from Firebird Energy for $1.6 billion. Both acquisitions will grow Diamondbacks Midland basin footprint by approximately 83,000 net acres and add 500 high-quality drilling assets to their portfolio. Read more  
  • Waldorf seeks to raise up to $2 billion as it looks to acquire additional assets in the North Sea
Waldorf looks to raise $2 billion to augment its asset base in the North Sea during a period where larger energy players in the region look to sell off their oil and gas projects to raise capital for renewable projects. Read more  
  • Marathon Oil acquires Eagle Ford assets of Ensign Natural Resources for $3 billion
The acquisition is expected to double Marathon Oil’s position in the Eagle ford shale basin in South Texas and cover over 600 undrilled locations, representing more than 15 years of inventory life Read more  

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Africa’s gas industry receives a fast-track pass from Europe
Africa’s gas industry receives a fast-track pass from Europe

Monthly Deal Round-up for September 2022 –  Oil, Gas & Energy deals by Wesley Johnson
Europe’s frantic scramble to replenish its gas reserves following disruptions in the energy market as a result of Russia’s invasion of Ukraine has presented a golden opportunity for some African nations. Historically Europe has imported around 62% of its gas supply from Russia with Africa chipping in with a steady average of about 18% over the past decade. As Europe desperately tries to wean itself off Russia’s supply, Africa has surfaced as a promising alternative and we are expected to see a drastic increase in exports from the continent in the upcoming years, according to Rystad Energy. According to the IEA, Africa has the potential to replace as much as one-fifth of Russian gas exports to Europe by 2030, and resource-rich nations on the continent could see billions in investment in the upcoming years. Early this year, the European Commission outlined its REPowerEU Plan to make Europe independent from Russian fossil fuels well before 2030 by accelerating renewable energy development and diversified gas supplies. As a result of the above, this has triggered a plethora of new LNG supply partnerships being forged across Africa. Amongst the front runners include the likes of Senegal and Mozambique. Germany for example has been working with Senegal since May this year to assist in the completion of the BP-led Greater Torture Ahmeyim LNG project. Furthermore, Germany has also expressed an interest in Senegal’s Teranga offshore gas field which is expected to recover 456.51 Mmboe, comprised of 2,739.07 Bcf of natural gas reserves. Italy, one of Russia’s core clients has turned to the likes of Algeria, Libya, Egypt, Angola, Mozambique and Congo for alternatives. Although Italy already imports gas from Algeria, they had recently signed a deal to augment their imports by 9 million tons of LNG by 2024. This much-welcomed capital boost for many African nations presents a valuable opportunity beyond the likes of economic prosperity and energy security. African nations who are in high demand for their resources should see this as an opportunity not just for short-term financial gain, but for longevity by re-deploying some of their returns into developing renewable energy technologies to set themselves up for sustained success. Furthermore, African nations should also look to capitalise on the Intellectual capital that these new partnerships can offer from the likes of leading technology nations like Germany. One option that could potentially support the above is by including provisions within new partnership agreements that aim to mobilise either monetary or intellectual capital into the development of renewable technologies within the country. An example of this could be the inclusion of a local content policy that sets fair obligations for foreign investors to support the development of endogenous technology and infrastructure. African nations that see this exciting opportunity as a long-term prospect will not only see benefits such as energy security and economic prosperity but will also organically find themselves in a position to join the world stage in our journey to achieve Net Zero. Returning to the monthly deal round-up below, I have highlighted my top oil, gas and energy deals closed off for September.

Renewable Energy deals

  • Brookfield to invest up to $2 billion in Scout Clean Energy and Standard Solar
Brookfield Renewable has agreed to acquire Scout Clean Energy (“Scout”) for $1 billion with the potential to invest an additional $350 million to support the business development activities ($270 million in total net to BEP). Furthermore, on the same day, Brookfield also announced the acquisition of Standard Solar for consideration of $540 million with the potential to invest an additional $160 million to support the business’ growth initiatives ($140 million in total net to BEP) Read more  
  • Intersect Power closes $3.1 billion in project financing to complete near-term portfolio totalling 2.2GWDC
Intersect Power announced the closing of an aggregate of $2.4 billion of new financing commitments and the allocation of $675 million of previously announced commitments for the construction and operations of four solar energy projects totalling approximately 1.5GWdc PV + 1.0GWh BESS. Read more  
  • Iberdrola sells 49% of Wikinger to EIP for $700 million
Iberdrola has signed an agreement with Energy Infrastructure Partners (EIP) for the sale of a 49% stake in Wikinger offshore wind farm in Germany. The transaction is valued at around €700 million, and Iberdrola will maintain a majority stake of 51%. The transaction further advances Iberdrola`s asset rotation plan to finance new renewable projects under development. Read more  
  • Glennmont Partners 250-million-euro green credit fund
Clean energy fund manager Glennmont Partners has launched a 250 million euro ($241 million) green credit fund to invest in clean energy and infrastructure assets. Glennmont Partners raises long-term capital to invest in low-carbon power generation projects, such as wind, biomass, solar and small-scale hydropower plants. Read more  
  • Shell makes their first African renewable energy deal by acquiring Daystar Power
Shell Plc’s renewable energy division has acquired Nigerian solar energy provider, Daystar Power in its first acquisition of a power firm on the continent. This acquisition comes as part of Shell’s efforts to reduce its Co2 emissions and focus on renewables. The takeover, which awaits regulatory approval, will enable Shell’s renewable and energy solutions business to deliver carbon emission reductions and power cost savings to commercial and industrial businesses across Africa, according to an emailed statement from Daystar. Read more  
  • Enbridge acquires Tri Global Energy for $270 million to boost renewables platform
Enbridge has bought Tri Global Energy, a renewable power project developer for $270 million in cash and assumed debt. The company will also pay up to an additional US$50 million contingent on the successful execution of TGE’s project portfolio. TGE is the third largest onshore wind developer in the U.S. with a development portfolio of wind and solar projects representing more than seven gigawatts of renewable generation capacity. Read more  
  • Amazon invests in another 71 renewable energy projects, totalling 2.7GW
Amazon has invested in another tranche of renewable energy projects as part of its aim to reach 100% renewable energy across its entire business by 2025. Their latest investments include renewable energy projects in South and North America, India, Poland, France and Germany. Read more  

Oil & Gas deals

  • Repsol sells 25% of oil and gas unit to EIG for $4.8 billion
Repsol is selling a 25% stake in its oil and gas exploration division to U.S fund EIG for $4.8 billion to free up some capital and deploy it into renewable energy projects in support of a lower-carbon future.  Its upstream business has set the strategic goal of reducing its carbon intensity by 75% by 2025. Read more  
  • Shell and Exxon sell Aera to IKAV for $4 billion
Shell and Exxon Mobil had owned the California oil joint venture Aera. German asset manager, IKAV has acquired Aera for a sum of $4 billion. Exxon and Shell have moved out of mature energy properties at a time when gas and oil prices are directed towards new deals and opportunities. Read more  
  • Sitio Royalties has agreed to acquire Bringam Minerals for $4.8 billion
The acquisition brings together two of the largest public companies in the oil and gas mineral and royalty sector and is expected to generate approximately $15 million of annual operational cash cost synergies and to reduce Sitio’s 2Q 2022 pro forma cash G&A per Boe by 19% to approximately $1.72 per Boe for the combined company. Read more  
  • EQT agrees to acquire Tug Hills THQ Appalachia for $5.2 billion
EQT Corp, the largest natural gas producer in the US, has announced that it has agreed to acquire Quantum Energy and Tug Hill Operating-backed THQ Appalachia I LLC and associated pipeline infrastructure in a deal worth $5.2bn. Read more  
  • Talos Energy has agreed to acquire EnVen Energy for $1.1 billion
Talos has acquired a plethora of energy companies, including Stone Energy to capitalise on higher oil prices. The acquisition of oil-weighted, deepwater assets, with significant infrastructure, is expected to increase Talos’ production capacity by 24,000 barrels of oil equivalent per day. It will also double the firm’s operated deep water facility footprint. Read more  
  • Tamarack acquires Deltastream Energy for $1.1billion
The acquisition positions Tamarack as the largest Clearwater producer with considerable scale and upside across Nipisi, Canal, Marten Hills, Greater Peavine, Perryvale and Jarvie. Read more    

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Fossil fuels on honeymoon, but for how long?
Fossil fuels on honeymoon, but for how long?

Monthly Deal Round-up for August 2022 -  Renewable Energy deals, by Wesley Johnson
O&G independents are receiving a long-awaited economic boost with renewed investment appetite from lenders. According to a recent article by the Financial Times, 7 of the 10 best-performing stocks on London’s junior AIM market are fossil fuel companies. The unfortunate situation in Ukraine and subsequent energy shortages seem to be driving this renewed investment appetite. After recent years of operating in an increasingly restrictive environment as a result of the global pressures to shift towards cleaner energies and lower for longer oil prices, I am sure this will be a much-welcomed ray of sunshine for many lenders and O&G producers. However, this much-welcomed economic boost for the oil and gas industry is causing slight concern amongst climate activists who believe that this will hinder the deployment of investment into clean tech and veer us off our path to net zero. Irrespective of this current capital injection for the O&G industry, a recent report by IHS Markit highlighted that there is just not enough capital currently being deployed into cleantech to be certain that we will reach net zero by 2050. In a study by PLOS ONE, it was revealed that between 2010 and 2018 super majors including the likes of BP, Shell and ExxonMobil did not deploy more than 4% of their capital expenditure on cleantech. According to a report from IHS Markit, this trend is likely to continue as oil and gas producers continue to enjoy higher profitability in rising oil and gas prices. However, with more and more public and private funders redirecting their funds to cleaner energies, this can only lead to suggest that this honeymoon period for oil and gas producers will probably be short-lived. Some examples include the US joining 25 countries pledging to end public finance for unabated overseas fossil fuel projects during Cop 26 last year. Furthermore, there are now 116 banks across 41 countries with a total asset base of $70 trillion that have joined the Net Zero Banking Alliance and pledged to align their lending and investment portfolios with net zero emissions by 2050. Further to the above, according to the IEA's 2022 world energy investment report, the world of cleantech investment still seems to be on track to top a record $1.4 trillion by the end of this year, but is this enough? One thing is for certain, our current situation has set itself up for what's to be a very interesting debate at this year’s COP 27 in Egypt. Returning to the monthly deal round-up below, I have highlighted my top pick of clean energy investment deals for August.  
  • Encavis buys 48MWp Dutch solar trio from BayWa r.e.
German solar and wind farm operator Encavis AG has acquired a 48 – MWp portfolio of three solar parks in the Netherlands from BayWa r.e. AG. With this latest acquisition, Encavis has augmented its generation capacity in the Netherlands to 228 MWp. The value of the transaction was not disclosed. Read more  
  • Albioma acquires six photovoltaic power plants in Brazil
French independent renewable energy producer Albioma has acquired a 31.6 – MWp portfolio of Photovoltaic parks in Brazil. The acquisition of this portfolio marks Albioma's entry into solar power in Brazil, a business with strong growth potential and which complements its existing assets. Read more  
  • Octopus Energy Group launches €220 million green energy fund to reduce Europe’s gas reliance
UK Octopus Energy group has launched a €220 million green energy fund and announced its first investment in UK renewables developer Exagen to build new green energy and grow the UK’s energy storage capacity. The “multi-million-pound deal,” includes the acquisition of a 24% stake in Exagen and an option to purchase a 500-MW/1-GWh battery in the Midlands, England, slated to go live by 2027 as the largest in the UK. Under the deal, the fund has also acquired three solar projects with batteries totalling about 400 MW in the Midlands and North East of England that is being developed by Exagen. Read more  
  • India’s ReNew lands $1 billion loan for hybrid project with Mitsui
ReNew Energy Global has secured a $1 billion project finance facility to build out 1.3GW of Hybrid wind and solar farms in India. Renew has signed a PPA with the Solar Energy Corporation of India on the project, which is 49% owned by Japanese investor Mitsui. Read more  
  • Shell Plc closes $1.55 billion acquisition of India’s Sprng Energy
Shell has completed the acquisition of Indian renewable energy firm Sprng Energy in a deal worth $1.55 billion from Actis Solenergi Ltd. This acquisition will triple Shell’s renewable capacity in operation and help it achieve its target of becoming a profitable net-zero energy business by 2025. Read more  
  • IHC acquires Kalyon Energi for $490 million
Abu Dhabi’s International Holding Co has acquired 50% stake in Turkeys Kalyon Holding, which has interests in construction, energy and aviation. This transaction marks IHC’s second-largest acquisition in the renewable energy space and includes solar power projects in Turkey’s Karapinar and Gaziantep regions and a wind power project in Amkara. Read more  
  • Swedish start-up H2 Green Steel has raised €190 million in Series B funding
H2 Green Steel has raised €190 million from a group of investors for building a fossil fuel-free steel plant in the North of Sweden. H2 Green Steel plans to have an annual production capacity of 5 million tonnes of green steel by 2030 which could reduce 95% of CO2 emissions compared with normal steel making. Read more  
  • Canada’s Omers injects $100 million into NovaSource Power
Omers Private Equity, the investment arm of Omers, announced that it has acquired a minority stake in Novasource Power Services.  Novasource is the largest independent Solar O&M provider in the US and globally. The proceeds of Omer’s investment will be used to finance NovaSource’s continued growth. Read more  
  • Shell New Energies is in the process of buying a 100- MW solar project portfolio in Wales and England from Anesco Ltd
Shell is in the process of purchasing four solar farm projects currently being developed by Anesco, to help meet the growing demand for renewable power in the UK. Read more  
  • Octopus Renewables invests in a 48-MW unsubsidised wind farm in Scotland
Octopus Renewables is to acquire 51% ownership interest in the Crossdykes wind farm in Scotland. The remaining 49% is to be acquired by another Octopus managed fund. Upon completion of this acquisition, Octopus Renewable’s operational portfolio will have a capacity of 608MW, with 3 assets currently under construction. Read more  
  • Windlab sells its African business to Seriti Resources for $55 million
Privately owned Seriti, a major coal supplier to South Africa’s state power utility Eskom, plans to buy a 51% stake in Windlab Africa’s wind and solar energy assets for $55 million. This is the first part of Seriti strategy to become an energy company, moving towards lower carbon technology with capital from coal. Read more Subscribe to our blog below👇for free monthly deal round-ups and insights from across the energy sector.  

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Energy Knect’s Expert Insight Newsletter, Vol 1
Energy Knect’s Expert Insight Newsletter, Vol 1

Wesley Johnson, Energy Knect

Welcome to Energy Knect’s Expert Insight Newsletter series where we aim to bring you the latest insights from some of the industry’s most influential leaders, best practice tips on how to grow your business and a series of event recommendations to help you augment your network and make more informed decisions.

In our latest newsletter edition, we caught up with Ian Cogswell from Portland Advisers and discussed his thinking on the risks in which lenders specifically focus on, when financing those new oil and gas projects that are designed with the transition towards net-zero emissions in mind.

We also offer you some insight into our learnings from our most recent research that identified the key challenges that businesses of all kinds are facing with regard to new business growth as a result of the pandemic. We provide you with simple techniques and solutions to overcome these challenges.

Please feel free to download our latest newsletter edition below.

EK Newsletter- Vol 1, 2020 download; EnergyKnect-Expert Insight Newsletter Vol 1, 2020

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