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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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A gust of wind for clean energy investments
A gust of wind for clean energy investments

Monthly Deal Round-up for July 2022 -  Renewable Energy deals, by Wesley Johnson
From a global pandemic to energy security challenges, it’s no secret that we could brush up on our risk management skills to better support unprecedented events, or should we be taking a few pages out of Nostradamus’s book? As devastating and painful as these events may be for every one of us, often we can find an upside somewhere amongst the green hilltops. Many nations, including the likes of the EU, the US and the UK are desperately trying to find alternative energy supplies to support their energy security needs as they look to reduce their dependency on Russian oil and gas. As demand increases and energy prices soar, it’s evident that renewed investments in renewable energies are on the rise. According to a recent report by Bloomberg NEF, global investment in renewables reached record levels during the first half of 2022, achieving an all-time high of $226 billion. Investment in solar projects reached $120 billion, up by 33% over the first 6 months of 2021 and financing for wind projects jumped up 16% to $84 billion with China, the US and Japan leading the way according to BNEF. And it doesn’t stop there. According to the IEA, clean energy investment is expected to top $1.4 trillion by the end of 2022 and now accounts for almost three-quarters of the growth in overall energy investment. Returning to the monthly deal round-up below, I have highlighted 10 clean energy investment deals that were concluded in July and are worthy of a podium spot.  
  • Orsted acquires Ostwind Engineering for $702,93 million
Orsted has agreed to acquire German and French renewables developer Ostwind, based on an enterprise value of $702,93 million. Ostwind has a portfolio of 152MW in operation and under construction, approximately 526MW in advanced development, and a further 1GW in its development pipeline. The transaction aligns with Orsted’s strategy to further expand its European footprint.
Read more
 
  • Octopus Energy Completes Fundraise of $550 million
Octopus Energy Group’s investors have further backed the company’s global expansion and renewables strategy, with all of them meeting or exceeding commitments made last year. CPP investments have committed an additional US$225 million to Octopus’s efforts to accelerate and enhance the integration of renewables in the power system including its energy tech platform, Kraken. Read more  
  • Pantheon Infrastructure invests £40 million in Fudura
Pantheon infrastructure PLC will invest £40 million in Dutch electricity provider, Fudura. The London-based investment company co-invested alongside, DIF Capital Partners. Fudura will be the first asset in Pantheon Infrastructure's 'renewables & energy efficiency' category in its portfolio and fits right into its diversification targets and strategy. Read more  
  • Greener Power Solutions raises €45 million in capital
Greener Power Solution acquired €45 million in funding from DIF Capital Partners. DIF is a Dutch investment company with over EUR 11 billion under management that is globally active in and invests in infrastructure and sustainable energy. Greener will use the capital to strengthen its market position in the Netherlands and beyond, by further investing in hardware, software and innovation. Read more  
  • Cummins invests $24 million into VoltStorage
VoltStorage said it plans to use Cummins's investment to develop larger-scale redox flow storage systems for commercial, agricultural and residential use. The investment will also help VoltStorage move its low-cost iron salt battery closer to commercialization that could be used to store energy generated by wind and solar farms. Read more  
  • Gulp acquires the remaining 24.99% in Titan Solar for $142.97 million to take full ownership
Galp bought the remaining stake from Cobra, an ACS unit that was recently sold to French Group Vinci. Titan’s portfolio includes 1.15 GW of solar photovoltaic (PV) plants in operation and several projects at different stages of development with about 1.6 GW of additional capacity expected to be online by 2024, all located in Spain. Read more  
  • United Utilities sells its Renewable Energy business to SDCL Energy (SEEIT) for approximately £100 million
United Utilities has developed a portfolio of solar, wind and hydro renewable assets since 2014 and UURE comprises 69 MW of renewable generation assets across 70 sites. This sale allows UU to recycle its capital employed in the UURE business back into the next phase of our ambitious journey to net zero, whilst continuing to source green energy from the existing UURE portfolio. Read more  
  • Atrato Onsite Energy acquires Hylton Plantation Solar Farm for £10.6 million
The transaction sees Atrato take on the ownership of a behind-the-meter private wire solar installation project for Nissan and it will complete the installation, alongside its delivery partner Engenera Renewables Group, of a 20MW ground-mounted system, using c. 37,000 panels, next to Nissan's manufacturing facility. The transaction is subject to a 20-year power purchase agreement on a 100% take-or-pay basis. Read more  
  • Ardian completes acquisition of solar photovoltaic (PV) pipeline in Italy
The French private Investor Ardian has completed the acquisition of a solar photovoltaic (PV) pipeline under development in Italy with around 100 MW of capacity. The acquisition boosts the fund's wind and photovoltaic assets in Italy to 283 MW and forms part of their €1 billion evergreen fund that was launched in April to invest in renewable energies. Read more  
  • MasT acquires IEA for $1.1bn
US-based renewable energy construction firm MasTec has agreed to acquire Infrastructure and Energy Alternatives (IEA) in a cash and stock deal valued at around $1.1bn The acquisition of IEA will expand MasTec's own clean energy and infrastructure division, providing it with incremental service capabilities and union-based clean power generation services, as well as expanding its clean energy maintenance offerings and strengthening its non-union craft labour and equipment resource capacity. 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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4 Reasons to join the Green Revolution
4 Reasons to join the Green Revolution

Wesley Johnson, Energy Knect The pressure to shift towards a low carbon future is certainly not a novel concept. Pressures to save our planet from ‘doomsday’ has been around for decades and the discovery of global warming dates back to the late 18th century. So why the sudden change? The events of the past year have sharpened investors interests in sustainable and resilient assets, including renewables, according to the International Renewable Energy Agency.  Moreover, climate change has now been listed among the top 10 risks to global businesses according to the Allianz Risk Barometer 2021. Consequently, carbon management and ESG( Environmental, Social and Governance) has now become a crucial strategy for any business that is looking to remain competitive and stay ahead in today’s economy. Deploying effective ESG and carbon management strategies boasts a plethora of benefits and opportunities for companies including the likes of accessing large pools of capital, robust relations with clients, development of a stronger brand and achieve sustainable long-term growth. We have listed a few of our favourites below. Gives your company a competitive advantage According to a report by KMPG, companies with a higher ESG performance are likely to have better financial performance, talent retention and long-term value creation. 3M’s Pollution Prevention Pays initiative(3P) is a great example of how companies can gain a competitive advantage through the deployment of effective ESG strategies. 3P prevents pollution at the source, in product and in manufacturing. 3P was introduced in 1975 and to date, has resulted in the elimination of more than 3 billion pounds of pollution and saved them nearly $1.4 billion. Supports revenue growth An effective ESG strategy that differentiates your business in the market by providing climate leadership, can lead to new client acquisition, an increase of profitability and the development of new products and services which will allow your business to tap into new markets. According to McKinsey, they found that upward of 70 per cent of consumers would pay an additional 5 per cent for a green product than for a comparable non-green alternative. Furthermore, according to multiple research reports, it is evident that sustainable investing and superior investment returns are positively correlated. Reduces costs According to McKinsey, effectively executing an ESG strategy can help reduce rising operating expenses including the true costs of raw materials, water or carbon. One of their studies found that by reducing resource costs, businesses can improve operating profits by up to 60 per cent. Brewing company Heineken, for example, is heavily reliant on quality water for their products and to sustain their business. Their latest finance and sustainability report revealed that they reduced their water consumption by 33 per cent in water-stressed areas since 2008 including a 51 per cent drop in carbon emissions from production. Consequently, this has saved the company €15 Million since 2009. Mitigates risks ESG has become an essential management tool for businesses to identify and proactively mitigate risks. According to EY, Investors increasingly believe that companies that perform well on ESG are less risky, better positioned for long growth and better prepared for uncertainty. For investors, ESG reporting is helping them avoid companies that might pose a greater financial risk due to their ESG performance. For businesses, ESG reporting is helping them shift away from traditional compliance-based thinking and reactive mindsets, helping them focus on a more proactive risk mitigation approach. Furthermore, according to KPMG, ESG reporting is challenging organisations to be more transparent about the risks and opportunities it faces which in turn pushes for more robust processes and enhances the credibility of what’s been reported. Ignoring these risks can be detrimental to businesses in the long term, as it can lead to a lack of funding, have an adverse effect on brand reputation, stagnate business growth and potentially see yourself fall behind your peers. With the increasing pressures from investors and stakeholders for businesses to disclose consistent, comparable and reliable data and the plethora of benefits attached to joining the green revolution, it probably doesn’t seem like a bad idea to hop onto the ESG train to set your business up for a fruitful and long-term growth journey, like so many businesses are already doing.

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The Oil & Gas Industry- so much pressure, little know-how
The Oil & Gas Industry- so much pressure, little know-how

Wesley Johnson, Energy Knect.

The Oil & Gas industry is under increasing pressures to reduce its carbon footprint, not next month, not tomorrow, but now.

According to a Harvard Law School article, policymakers and society are pressing change, threatening the operator’s license to operate. Investors are increasingly conscious of environmental issues and are now pushing companies to disclose consistent, comparable, and reliable data. The events of the past year, as per a recent report by the International Renewable Energy Agency, shows that investors have sharpened their interests in sustainable and resilient assets, including renewables.

So where does this leave oil and gas companies and how do they pivot successfully whilst remaining competitive?

According to McKinsey, there are three key questions that leaders of oil and gas companies should consider as part of their transition strategy;

  1. How can we make our core hydrocarbon businesses more resilient?
  2. Should we expand into low-carbon businesses, and if so, how?
  3. How will our operating model need to change to flourish in a low-carbon world?

As imperative as the above-mentioned components are for a successful transition, environmental, social and corporate governance (ESG) programs are equally as important according to a recent article by Rigzone. Albeit, a very complex program, research suggests that maintaining strong relationships with the supply chain and local communities can also contribute as a key component for transition success.

One of many companies leaning into this challenge and addressing climate risks, by first and foremost, reducing their own emissions and, secondly, by adopting a system to be more flexible and resilient, is Duke Energy.

Duke Energy aims to reduce carbon dioxide (CO2) emissions from electricity generation at least 50 percent below 2005 levels by 2030 and to achieve net-zero CO2 emissions by 2050. According to their 2020 climate report, Achieving a Net Zero Carbon Future, Duke Energy 2020 Climate Report, they have already made significant progress towards their goals, reducing CO2 emissions by 39 percent since 2005, ahead of the industry average of 33 percent.

In their report they highlight that one of the key success recipes to build a path to net-zero is to work collaboratively with stakeholders and regulators in each of the states that you serve and to develop tailored plans that best suit their unique attributes and economies.

We welcome you to download Duke Energy’s 2020 Climate Report here for insights into their key strategies and achievements to date in their journey in becoming a net-zero business.

The more data and experiences we share the more efficient we will be. 😊

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A 2-Point Growth Plan for the next normal
A 2-Point Growth Plan for the next normal

EI Series 1, Part 4

Wesley Johnson, Energy Knect As the world slowly starts opening up again and companies begin to rebuild and restructure for the next normal, they should start thinking about the tools that will be required to capitalize on all the new and exciting business opportunities that will be up for grabs. As a result of the pandemic, the priorities of companies and the mindset of business leaders have shifted to align with a strategy that encourages efficiency across their workflows. Consequently, this has led to a change in how companies perceive and buy services and products, according to a recent article by McKinsey. Subsequently, this has also encouraged many companies to analyse their existing product lines and services, along with their strategy and approach to ensure that their products and services remain aligned to their client’s current needs and objectives. Energy Knect have devised a two-point plan to support companies with their “re-start strategy”, so that they can stay ahead of their competitors and take advantage of all the new and exciting business opportunities that lie ahead. Insights & Analytics According to research by BCG, more than 75% of CEO’s, presidents and chief operating officers believe customer insight is critical to accelerating growth, but very few companies use-or even have- all the customer information available before making major decisions. A very common mistake for businesses is to skip the ‘analysis’ stage and impatiently go straight into execution and start running comprehensive marketing campaigns with the assumption that their products and services are fit for purpose. With this approach, you risk exhausting large amounts of your marketing budget very quickly and perhaps you will drive a high level of traffic to your website, but the conversion and end commercial success of what you are trying to achieve will ultimately disappoint. Thanks to continuing advances in big data technology, client insights are becoming easier to interpret and according to research by Forrester, data-driven organisations are growing at an average of 30% or more annually. Although big data is a very effective tool to harness your client analysis, that’s really just one component you should be leveraging to achieve success. We believe an over-arching and segmented approach to your analytics strategy is key. By leveraging multiple and inexpensive tools already at your disposal such as; your CRM, Google Analytics, online survey platforms such as survey monkey, conducting traditional market research, participating in events and most importantly having insightful conversations with your existing clients will help your company identify who your target client is and what their current needs and objectives are, so that you can identify new business opportunities and align your products and services to meet your client’s needs and objectives. A great place to start to help you identify and segment your target audience is through leveraging your existing database and CRM. If you need to grow your database and reach, there are a few user-friendly and inexpensive bolt-on apps such as Sellhack or Contact Out that can support you with this. Once you have identified your target audience and developed a compelling business proposition from your analysis, the next step will be to drive awareness and engagement. According to McKinsey, one of the biggest challenges for companies is to convert their insights into actions that can drive commercial growth. In the next section of this article, we will provide you with a few handy tips on how you can monetize your analysis and drive engagement. Awareness & Engagement Although many brands may not reach eponym status like Cola, Kleenex or Xerox, we suggest that your success should rather be measured on the following key components;
  • Your target audience and clients knowing what your business is about and the services/products that your offer
  • A social media user knowing that your articles are going to be thought-provoking and valuable to them
  • Clients choosing your product/service over your competitors despite you offering higher rates
Research suggests that brand awareness is pivotal to business success, as it helps you achieve your marketing objectives and encourages your business to stay ahead of your competitors, build an audience, and generate more leads. However, not all marketing campaigns are suited for all budgets, nor is there a one-size-fits all solution. The great news is, there are multiple options and cost-effective solutions that you probably just need to dust off from the shelf next to you. We have listed a few of our favourites below;
  • Social Media is a great way to increase awareness. Publishing an article on your social feed costs nothing but your time and can be a very effective way in showing off your knowledge and expertise, and engaging with your target audience. Show your audience how great you are at solving their challenges.
  • Participate in, or sponsor conferences that are relevant to your target audience. Speaker drop-outs are very common in the events industry, so make sure your speaking expertise are known to the organiser and that you will be happy to fill a gap if required.
  • Run ads on Google Display Network. The Google Display Network is said to be the No 1 global display ad network, reaching over 90% of internet users worldwide, with more than 1 million impressions served to over 1 billion users every month. It’s a great way to reach your target audience at the right time and can be very cost-effective, as you have control over your spending. We recommend you start small with a budget that suits you and then monitor your display campaigns to explore which one is providing you with the most return. Once you have identified your top runners, just adjust your budget accordingly in favour of your winners for maximum results.
  • Corporate newsletter- introducing a monthly corporate newsletter is a great way to build loyalty, raise brand awareness and retain engagement with your target audience. It’s a very cost-effective marketing solution and allows you to continuously update your target audience on your expertise and success with your clients.
  • Host an online interactive workshop series that tackles client challenges that you have identified through your analysis. We advise your sessions to be no longer than 45 minutes and conclude with a fun networking session to get to know your prospects and clients on a personal level.
Conclusion BCG research has shown that 80% of companies have only the basic customer insights tools and capabilities, and they underuse what little they have. Companies looking to expand in the next normal and capitalise on all the new and exciting business opportunities will need to think about devising a strategy that can augment their reach with existing clients and acquire new one’s. To achieve this, a company will need to revert to the drawing board and think about who their target market is and what their current underlining intent is, to ensure their existing product/service lines are still aligned to support their client’s needs and objectives. By developing a simple strategy like the above along with leveraging your existing resources, could be the fundamental difference in setting your company apart from your competitors and being able to mop up on all the vacant market share that will be up for grabs. As a result of the pandemic and in some cases, the playing fields have now levelled out. Is your company ready to capitalise on the new business opportunities that lie ahead?  

The Energy Knect Approach

Through our vast industry experience and global network of professionals, Energy Knect can help your business devise an effective strategy that identifies the key challenges that your target audience are currently facing and help you develop a compelling business development proposition that sets you apart from your competitors. If you would like to discuss your unique situation with us and how we can support your business with an effective strategy that aligns with your budget, please feel free to ping us a note at: info@energyknect.com    

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Energy Knect’s Expert Insight’s Newsletter, Vol 2
Energy Knect’s Expert Insight’s Newsletter, Vol 2

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 Chris Starling from Holt Energy Advisors and discussed his thinking on how best to conduct due diligence on acquisition targets, balancing time, costs and feasibility in a COVID-19 environment. We also offer you some insight into our learnings from our most recent research that identified the top three technologies that businesses of all sizes are leveraging to generate new business and revenue. Please feel free to download our latest newsletter edition below. EK Newsletter- Vol 2, 2021 download; EnergyKnect- Expert Insight Newsletter Vol 2, 2021

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3 Technologies that can help companies drive new revenue
3 Technologies that can help companies drive new revenue

EI Series 1, Part 3

Wesley Johnson, Energy Knect

One of the many positives that the pandemic has brought to companies, is the encouragement to figure out ways in which they can better connect with their clients and support their needs. This has resulted in many companies having to embrace in digital transformation, and for those who have, they have been rewarded with multiple benefits such as revenue growth, stronger customer relationships, efficiency and optimization across their workflows.

Following our research for this article, we found that companies who embrace digital technologies are not only able to find the edge that is required to stay ahead in today’s competitive market, but are also likely to be 26% more profitable than their peers, according to a study by MIT.

Below, we have highlighted our top three technology solutions that are currently driving new business and revenue growth for companies along with the key benefits that are associated with leveraging these technologies.

AI

According to an MIT Sloan Management Review and BCG AI survey, almost 90% of executives agree that AI represents an opportunity, but only a mere 18% have tried to use the technology to generate revenue.

AI improves a company’s capability to grow revenue and generate new business in two distinct ways, according to BCG. It has the ability to detect weak signals, which can help companies develop, refine and generate multiple forecasts. Secondly, the speed at which AI works provides companies with the ability to analyse large amounts of data to make more informed decisions in real-time. By improving the accuracy of forecasts coupled with making real time decisions, AI can help companies generate more revenue.

AI has the ability to act as your sales teams most valuable partner by offering them insights into what the next best actions are to take, based upon a menu of high-end options that are more likely to drive commercial results. Furthermore, AI technology can improve accessibility to client data wherever and whenever you may need it, helping your team be more efficient when working remotely. AI also has the ability to offer more data-driven insights into your customers to help identify sales trends and buying signals and streamline workflows which can automate communications and trigger notifications.

As companies focus on growth after the pandemic and economic crises, they should consider not only cost-cutting, but also long-term revenue creation. AI is positioned to help companies make faster decisions and tailor their solutions to gain a competitive advantage over their peers.

Predictive analytics

According to Sales force’s most recent State of Marketing Report, 70% of high-performing teams are far more likely to use tools such as predictive analysis compared to 35% of low-performers. As technology has evolved, it has become much more affordable and accessible for companies of all sizes, not just the giants like IBM and Amazon with the expertise to leverage the tech in their favour.

Gain a competitive advantage – one of the primary benefits of predictive analytics is to identify market trends and gain a competitive advantage. Your client’s buying behaviour is forever changing and if you can identify these changes first, you will be better equipped with the insights to align your product or service to your customer’s needs.

Client insight – being better informed will autonomously lend itself to a more productive salesperson. Predictive analytics can provide you with information about your client’s buying behaviour, their expectations, whether there are any cross or upselling opportunities, or whether there is any competition moving in on your territory. Using this data, your team will be better positioned to tailor their sales and marketing approach to your client’s needs, which will also result in more meaningful conversations.

Personalization – analytics can help salespeople drive more personalization at scale. It allows companies to offer more personalised and targeted products which can encourage greater sales success. Companies who can segment their audience and target their prospects with a personalised message that has resonance, will have greater conversion success.

Automation

One of the primary components that determines a successful salesperson is the time they spend on selling. Sales Automation has the potential to reduce the costs of sales by freeing up time spent on repetitive and unrelated tasks and to unlock additional revenue by automating outreach to clients in the sales funnel. On average, high performing sales reps spend 20-25% more time with customers than lower-performing reps, according to McKinsey. Companies that standardize and automate non- customer-facing activities, such as admin tasks, free up time for activities that directly deliver commercial results.

According to McKinsey, early adopters of sales automation consistently report increases in customer-facing time, higher customer satisfaction, efficiency improvements of 10 to 15%, and sales uplift of up to 10%.

While sales teams make more data-based decisions, winning deals still takes a human touch. According to the state of the connected customer survey by Salesforce, 81% of business buyers expect companies to understand their needs and expectations. In this regard, selling is a deeply personal activity that requires a great deal of soft skills and trust. We believe automation is not the process of replacing human workforce, but rather the process of working collaboratively to provide optimal service to clients.

Deployment of tech

Bringing in technology is arguably the easiest bit, but to capture the real benefits from automation, companies will need to find ways to ensure their strategy is embedded into the culture of the organisation. McKinsey highlights that, those with standardized sales processes in place and collocated sales support functions usually capture bigger benefits from technology integration and see an impact faster than their peers. This is because their costs of integration, technological deployment, and change management are lower.

Having everyone on board and everyone driving it forward, will be pivotal to the success of the integration, and that’s why we believe that the Money Ball Strategy could be an effective approach in deploying technology. If you are able to build a strong team of champions who can demonstrate their success from using the technology to the rest of the team, we believe that this will help you obtain the adoption you need.

We suggest that your integration process should also be rolled out fairly slow, perhaps in bite sizes, allowing the end-users time to digest the real benefits and value of their new digital sales partner. This will also offer you the time to develop successful narratives to showcase to the rest of your team, to help you gain the additional internal support you might need to roll out the tech successfully.

Conclusion

Research suggests that the net global spending on digital is expected to increase to more than $2 trillion by 2022. Moreover, 79% of companies have admitted that COVID-19 has encouraged an increase in their budget for digital transformation. This is perhaps an indication that technology has become more accessible and cost-effective than ever before. The value and benefits of adopting technology have evidently become far more significant than the efforts and the expenses companies have to undertake to deploy the technology.

When you allow your company to embrace digital transformation, you will not only see benefits such as revenue growth, but also the optimization and improvement of your existing workflows and operations, which will provide you with the edge that is required in today’s competitive business landscape.

The Energy Knect Approach

At Energy Knect we believe that every client we work with deserves a tailored approach to their unique challenges and goals. Our extensive experience, business knowledge and expertise is stimulated through our continuous engagement with our senior advisory board and global network of senior industry professionals. As a result, Energy Knect are well positioned to identify potential improvement areas within your business development function and employ proven business development strategies to support new business and revenue growth without the heavy investment tag.

We welcome you to join our free online networking community for senior Energy professionals here.

www.energyknect.com / info@energyknect.com

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Top 3 revenue-generating strategies for Professional Service Firms
Top 3 revenue-generating strategies for Professional Service Firms

EI series 1, Part 2 Wesley Johnson, Energy Knect In the current economic climate, businesses have been encouraged to re-strategize and find effective ways to remain competitive, or face the risk of being left behind. Firms are typically faced with two primary options, inter alia to remain competitive and generate revenue in today’s market. There is the so-called traditional approach which entails increasing rates and reducing expenses, or the other approach, which is investing more in business development strategies to ensure that you are set up for sustainable and rapid revenue growth, according to Boston Consulting Group. In Part 2 of our EI Series, we researched multiple revenue-generating techniques from across our network to identify the top performers to share with our network. When deciding on which strategies are best suited to drive new business growth for your firm, it seems only natural to undertake multiple options, in the hope that one or two of your invested strategies produce results. However, it’s no secret that this approach can result in a waste of your time and money and become a challenge for you to identify the techniques that are delivering the ROI. Following our research, it was highlighted that a well implemented strategy underpins the success of new business and revenue growth. Being able to connect your plan with your vision, will result in being able to identify the target clients that are aligned to you. By understanding your target market and client’s, coupled with clarity of your competitive advantage, will help your business prioritize its efforts. Out of the many business development growth strategies that were identified through our research, which included the likes of; cross-selling, referrals, sponsorships, attending conferences and joining committee groups, there were clearly three top performers. Develop Your Business Development Skills When it comes to business development, there are typically two types of professionals. The naturals and the ones that are slightly more introverted. It’s no secret that lawyers are not taught how to be salespeople in law school. By building up your business development and networking skills, you can gain that competitive edge over your competitor and increase your revenue opportunities. Lawyers, being the primary revenue drivers for your firm, need to be equipped with the skills to be able to network, deliver presentations and close deals. These are all very important skills that should never be overlooked. According to a survey orchestrated by introhive with more than 100 legal firms of all sizes, firms that recognized this gap and provided sales training or business development coaching, saw their lawyers generate more revenue and grow their client base faster. As a solution, try to increase your firm’s business development coaching with one-to-one training sessions, group training, online seminars, or by partnering with third-party consultants to increase penetration in markets with limited sales presence. By employing a specialised outsourced consultancy to support your objectives, you will have the advantage of saving time, money and resources. Client Education When stepping into your client’s shoes, they typically hire legal firms for their legal advice, expertise and thought leadership. One way in which you can position yourself as a leader in your field and benchmark yourself against your competitors is to share your knowledge and expertise. The more you can share your expertise and educate your clients, the more valuable you become, which can improve retention, loyalty and support new business growth. A few education techniques include; Provide regular market intel – educate your clients by developing informative articles and Insight reports which includes your firm’s deep industry knowledge. Providing insights into upcoming challenges which impact your client’s industry, including how you are planning to deal with these challenges, is a very effective way in marketing your firms expertise. Client (In-House) training – one way to get valuable face time and educate your clients simultaneously, is to provide online and onsite training to inhouse lawyers or other employees about a particular area of the law or a specific challenge. Due to the enforcement of remote working following the pandemic, online video conferencing and webinars have become an inexpensive and effective solution for onsite training and has the advantage of reaching out to a wider audience. Networking – an effective approach to provide your clients with intel, is to host your own professional networking platform to help your clients meet other businesses and identify new business opportunities. Try to make a conscious effort to introduce your clients to each other and to third parties that can support their businesses. To enhance the effectiveness of this solution, couple this approach with a training session for your clients. Strengthening relationships Existing and potential clients want to work with professionals that understand their business and the challenges that they face. By having regular touchpoints with your clients, sharing your unbiased advice coupled with providing your professional expertise consistently will help strengthen your business relationships. Moreover, understanding the competitive environment your client operates in also provides your firm with a competitive edge. Investing in technologies such as data-gathering tools, which include the likes of customer relationship software can be very effective in strengthening client relationships, as it allows you to identify your client’s preferences. Furthermore, technology can streamline and automate your businesses process which improves efficiency and reduces costs. Strong relationships are not only for client retention and loyalty, but for driving new business and growing your firm too. In many instances this also becomes a catalyst for identifying cross-selling opportunities for your firm, which in turn, encourages revenue growth. Conclusion With the growing trend of fierce competition, coupled with challenging market conditions, legal firms will need to find effective ways to ensure that they remain competitive. By implementing a well-crafted strategy which helps connect your plan with your vision coupled with the use of technology resources, can help support new business and revenue growth success.

The Energy Knect approach

At Energy Knect we believe that every client we work with deserves a tailored approach to their unique challenges and goals. Our extensive experience, business knowledge and expertise is stimulated through our continuous engagement with our senior advisory board and global network of senior industry professionals. As a result, Energy Knect are well positioned to identify potential improvement areas within your business development function and employ proven business development strategies to support new business and revenue growth without the heavy investment tag.

 

Look out for our next article in our EI series, where we will provide you with insights on how to leverage inexpensive tech to drive new business and revenue growth.

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