Global oil companies are plowing billions of dollars per year into solar and into energy storage, as more nations seek to switch their energy sources away from fossil fuels. In only 5 out of 15 acquisition deals done in solar over the past two years, over $8 billion was spent, according to an analysis by Mercom Capital Group.
Similarly, out of 7 funding deals by oil companies over the past two years, more than $240 million was provided to solar companies, Mercom calculates.
For battery storage investments, 6 acquisition deals were reported during the past two years, without values, Mercom says. During the same time period, 7 funding deals were done, involving nearly $133 million, Mercom says.
The largest of the oil investments into solar was by Germany’s E.on, with a $5.8 billion investment into Innogy, earning it a stake of 76.8% of the company in June 2018, Mercom shows. The next largest acquisition was by France’s Total, with a $1.7 billion investment in Direct Energie for a 74.3% stake.
The value of the largest oil investment in battery storage was not disclosed, but is likely the acquisition by the Netherland’s Shell of Sonnen, earlier this month. The largest funding operation of a battery storage company was a loan of $70 million from Shell in May 2018 for Sonnen.
Many more oil companies are in the solar and battery storage investment fray. Royal Dutch Shell has acquired a 44% stake in solar developer Silicon Ranch for $217 million, Chevron has made investments in solar, BP spent $299 million for a 43% share of Lightsource’s combined 1.4 gigawatts portfolio of wind and solar, and Total Energy Ventures owns 56% of solar panel manufacturer SunPower, and has invested about $160 million in 20 renewable energy startups including solid-state lithium-ion batteries, according to the Motley Fool.
Recent Comments