Issue No 1
TRENDS & HAPPENINGS
Alliances and acquisitions key to decarbonization efforts!
Power deals in the clean energy sector. Renewable energy accounted for 303 power deals announced in the 2nd Quarter of 2023, for a total value of $25.3bn, with the $6bn acquisition of Iberdrola Mexico by Mexico Infrastructure Partners leading the charge. The surge in acquisitions, particularly by key oil and gas companies,reflects both the growing value of renewables and other clean energy options in the energy mix, and the fact that these companies are poised to benefit most from such investments.
M&A Alert! Exxon entered an agreement to acquire Denbury Inc, a well-known developer of CCS solutions and enhanced oil recovery. The acquisition is an all-stock transaction valued at $4.9 billion. The acquisition of Denbury accelerates Exxon’s Low Carbon Solutions business and provides it with the largest owned and operated CO2 pipeline network in the USA, spread across multiple states, located within one of the largest U.S. markets for CO2 emissions and onshore sequestration sites.
Green Alliance in EU With Norway already established as a leader in decarbonization efforts including in CCUS, it is not surprising to see the EU and Norway establish a Green Alliance to strengthen their cooperation on the clean energy and industrial transition. The EU-Norway Green Alliance is a comprehensive bilateral engagement established under the European Green Deal, and targets include hard to abate industries as well as all modes of transport.
WTO meeting on decarbonization standards in steel:In March 2023, the WTO held its first ever forum to speed up steel sector energy transition by facilitating coherence and transparency in decarbonization standards. This was the first time that steel industry representatives and officials came together at the WTO on climate issues, with participants noting that policy fragmentation and incompatible carbon standards — with at least 20 different standards in existence, have the potential to undermine the global scaling of steel sector decarbonization. Producers’ struggle to cope with disparate and competing policy requirements, add to costs and uncertainty in efforts, and hamper decarbonization investments.
Ministerial Meet in Goa The 14th Clean Energy Ministerial (CEM14) and 8th Mission Innovation meeting was held in Goa earlier this month, on the margins of the G20’s Energy Transitions Ministerial Meeting. India’s green hydrogen drive is being heralded as being indicative of India’s lead role in driving global renewable energy production. Aligning Industrial policy with policy for hydrogen production will be key according to the Chief of the Climate and Technology Partnership Division of the United Nations Industrial Development Organization (UNIDO) participating at the event.