Big oil companies investing more in clean-energy deals amid pressure to diversify
Oil majors more than doubled their investments in clean energy in 2016, which industry attracted almost $290bn last year
London — The world’s biggest oil companies are closing more clean-energy deals as pressure to diversify their businesses mounts and growth accelerates in green technologies. Oil majors more than doubled the number of acquisitions, project investments and venture capital stakes, to 44 in 2016 from 21 the year before, according to research published by Bloomberg New Energy Finance (BNEF) on Tuesday. In the past 15 years, they’ve completed 428 transactions and spent $6.2bn building stakes in clean-energy companies. "This reflects their underpinning strategy to test out new ideas and businesses," said Richard Chatterton, one of the London-based analysts that authored the report. "The international oil companies are identifying opportunities and building expertise, and when a commercial opportunity becomes clear, they will invest at scale." To be sure, the sums expended on clean energy still represent a fraction of the money invested in crude every year, showing that the oil majors are s...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.