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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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3 Simple ways your business can work towards a greener future
3 Simple ways your business can work towards a greener future

Wesley Johnson, Energy Knect Adapting a green practice is rapidly becoming a leading trend for companies of all sizes. According to the KPMG Survey of Sustainability Reporting, 80% of companies worldwide are now reporting on sustainability, around 40% of companies now acknowledge the financial risks of climate change and one in five companies are reporting climate risk in line with TCFD recommendations. Research is indicating that businesses who are adopting sustainability practices are taking advantage of a plethora of benefits including the likes of a competitive advantage over their peers, reduction of costs, new revenue opportunities and forging stronger relationships with clients, according to McKinsey. I have highlighted a few popular “green” practices below that companies are currently adopting. Calculate your carbon footprint Calculating your carbon footprint at the first instance is a great place to start in order to obtain an idea of what areas need improvement and where you can prioritize your efforts. Thanks to the growing trend in businesses wanting to do their part to save the planet, there are now many useful and user-friendly online tools available for companies to calculate their carbon footprint. A few popular options amongst businesses right now are the Carbon Footprint, WWF Carbon Footprint Calculator and Climate Care. Depending on the complexity and size of your business, another option would be to seek support from an environmental and sustainability consultancy. They will not only calculate your net carbon output but also help you develop a plan to decrease it by providing you with a tailored and easy to follow management system to achieve your objectives. Furthermore, they typically provide the necessary training and are able to either request or offer you sustainability and environmental certifications to enhance your marketing efforts. According to a recent survey by KPMG, GRI remains the most commonly used reporting standard or framework used by businesses for sustainability. If you do decide to go down the consultancy route, it’s advisable to research firms that specialise in your field or market segment, as they are typically better equipped to understand your situation and needs. For example, the SME Centre is an advisory firm that supports SME’s with sustainability and carbon management systems and certifications. Their management systems are already tailored to suit SME’s which in turn could save your business time and money from unnecessary consulting fees. For the larger, more complex business types, top tier firms like Accenture, Bain and PWC are well-positioned to offer your business sustainability and carbon management support. Renewable energy source One of the most effective and easiest ways in which your business can reduce its carbon footprint is by switching to a green or renewable business energy tariff. As companies start to embrace their shift towards a lower-carbon future, the process of opting for a greener energy provider has become more efficient and cost-effective than ever before. Research suggests that this is a result of many challenger brands competing for their place in the market as well as the likes of low carbon technology advancements, accelerated investment into infrastructure, and concerns around climate change and fossil fuels. According to research by Forbes, right now, the big six “green” energy suppliers in the UK are British Gas, EDF Energy, E-ON, Npower, Scottish Power and SSE. There are also a few smaller, independent providers such as Bulb, Ecotricity and Octopus Energy that provide renewable business energy tariffs. The smaller independents often market cheaper tariffs for your business which as a result, could help your business save on your existing tariffs. If your business is interested in making the switch there are plenty of online comparison tools like U switch or Forbes Advisor that can help you explore what options are best for your business, budget and needs. Carbon offsetting Whilst most businesses do their very best in trying to reduce their carbon footprint, some forms of emissions are just unavoidable in order to remain competitive. As a solution to this roadblock, businesses can offset their unavoidable emissions, by purchasing carbon credits, which are then used to support environmental projects around the world that either reduce greenhouse gas emissions or absorb carbon dioxide from the atmosphere. Despite some controversy around the lack of transparency and concerns over the quality and integrity of offsetting schemes there still seems to be a growing trend of companies around the world flocking to purchase offsets. Gold Standard, for example, issued 151 million carbon credits from over 900 projects in 2020 according to their most recent market report and Bloomberg quoted that the number of offsets sold in the past two years has doubled. Perhaps the reason for the increased uptake is the growing perception that voluntary carbon credits can play a vital role in accelerating the transition to a global decarbonized economy and that avoiding emissions is typically the most cost-efficient way to address atmospheric greenhouse gas concentrations, according to McKinsey. The verdict In the past, companies typically shied away from green initiatives, as the return on investment was often difficult to quantify. However, with more companies incorporating green initiatives, it is now becoming evident that we are seeing positive and measurable impacts including the likes of improved efficiency, employee retention, cost savings and revenue growth, along with a competitive advantage and good brand reputation. Is your business taking advantage of the "green opportunity"?

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