Finance, Mergers & Acquisitions
The green energy space enjoys a particular constant, namely that it is always in a state of change. This is especially true at the corporate level, where mergers and acquisitions are helping to reshape the sector, breaking down barriers between verticals and allowing new entrants to the market to grow share quickly. In this article I’ll look at some examples of funding and international M&A that have caught the eye in recent months.
China’s Silk Road Fund has purchased a 49% stake in Acwa Power Renewable Energy
It’s become apparent in recent months that China’s OBOR (One Belt One Road) strategy is getting some strong green credentials. An Announcement earlier in the year from China’s National Energy Administration stated, “In the past five years, according to the principle of joint construction and sharing, international cooperation in energy resources has become the top priority of the Belt and Road construction.” Many analysts recognise that renewable energy schemes are a great sweetener to countries that were sceptical of the of the policies more general construction and transport bias. Taking a stake in Acwa is an ambitious move, the business has assets and schemes in UAE, South Africa, Jordan, Egypt and Morocco. Significantly the business has Solar CSP assets as well as Solar PV. There is a strong expectation that Solar CSP technology is going to receive a revival in China and this may be a key step in accessing fresh insight and capability in the technology.
Bridges Acquire GEV Wind Power
Fund manager Bridges have acquired GEV Wind Power from Maven Capital Partners. GEV is a specialist in wind turbine repair with a strong record of accomplishment in the UK, Europe and the US. This is an interesting move; Wood Mackenzie released a report in June this year that suggested that the global offshore wind O&M market will grow by 17% per year and will be worth €11bn by 2028. The longer future looks even better, with many European offshore wind farms still relatively young, many will need increased maintenance after 2028 and this will then likely lead into greater maintenance needs in the US as their current wind assets reach the later stages of their lifespan.
Oxford Photovoltaics Secures Series D Funding
There has been a lot of interest for some time around Oxford Photovoltaics. Their latest round of funding secured £65m of finance and saw Meyer Burger acquire 18.8% in the business. The firm is hot property with their extensive R&D and innovation in Perovskite solar panels. Manufacturing of their technology will start next year in Germany and is destined for big things with Perovskite technology really capturing the imagination of European solar especially. Oxford PV has a commanding lead in the worldwide race to commercialise this new tech and is one to keep watching.
Cummins to Acquire Hydrogenics Corporation
In Canada, Cummins Inc. a major power leader and manufacturer of engines is underway with a takeover of Hydrogenics Corporation a maker of hydrogen fuel cell technology. Hydrogenics have been working on the clean technology for 24 years and have a fantastic pedigree for R&D and innovation in the sector. The move comes at a time where there is increasing interest globally in green hydrogen and hydrogen cars. This is being driven by fears over lithium access and pricing, making hydrogen a great alternative investment for the next generation of transport.
Last year the power sector in general saw $158bn in global M&A activity. If year to date is anything to go by, that figure is well on its way to being beaten.
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