EIR Tracks $79B in Power Asset and Energy Transition M&A Through H1

EIR Tracks $79B in Power Asset and Energy Transition M&A Through H1
'Recording nearly $80 billion through the first six months of 2024, plus an additional $26 billion so far in 3Q24, is a showing of strength for power and energy transition deal markets'.
Image by YOTUYA via iStock

In a release sent to Rigzone by Enverus this week, Enverus intelligence Research (EIR) said it has tracked $79 billion in power asset and energy transition M&A through the first half of 2024 across 234 deals with a reported value.

EIR highlighted in the release that the figure “put… M&A slightly ahead of 2023’s pace of $74 billion in the first six months” but added that the count for deals with a disclosed value declined by 35 percent. Including those where no value was disclosed, there were 540 announced deals in 1H24 compared to 877 deals in the first half of 2023, EIR stated in the release.

A chart in the release put total transaction value at $105 billion year to date in 2024, $162 billion in 2023, $200 billion in 2022, and $182 billion in 2021.

“Recording nearly $80 billion through the first six months of 2024, plus an additional $26 billion so far in 3Q24, is a showing of strength for power and energy transition deal markets despite multiple challenges including macro-economic factors like sustained higher interest rates that have raised financing costs,” EIR said in the release.

Ian Nieboer, Managing Director and Head of Energy Transition at EIR, highlighted in the release that “industry specific challenges have included weakening pricing for renewable fuel credits (LCFS and D4/5/6 RIN prices) as well as lithium carbonate equivalent (LCE) pricing”.

“A volatile environmental credits market has sparked uncertainty in investors’ minds leading to a compression in deal flow in alternative fuels in the U.S.,” Nieboer added.  

Nieboer noted in the release that “international investment by firms like KKR highlight the global nature of energy transition combined with differing policy priorities and incentives between regions that allow firms to reduce risk by diversifying geographic exposure”.

EIR pointed out in the release that “a large investment by KKR in European biorefining and biomethane assets kept alternative fuel deal value relatively flat at $2.2 billion in 1H24 compared to $2.7 billion through the first six months of 2023”. 

In a separate release sent to Rigzone by Enverus back in July, Donald Campbell, Global Scout - Global Manager for Energy Transition at Enverus, said “the current global energy transition is like a two-headed snake, caught between idealism and pragmatism”.

“Energy policies in Sub-Saharan Africa, South America, and Indonesia highlight this tension as they strive to align local socio-economic and geographical realities with ambitious energy goals,” he added.

EIR Analyst Carson Kearl pointed out in that release that China “leads the world in solar capacity adds, nuclear builds, electric vehicle sales, solar manufacturing capacity, and infrastructure construction lead times”.

“Africa, South America, and other Asian nations may no longer look to the West as a primary energy partner if this trend continues unabated,” he added.

In another release sent to Rigzone in October last year by Enverus, the company revealed that it was adding new product solutions “to meet the needs of the developing, $3.5 trillion per year energy transition market”. 

“The energy mix is changing globally, creating risks and new opportunities across the energy system valued in the trillions,” Enverus said in that release.

“Technologies focused on wind, solar and batteries, have already disrupted power markets, while carbon capture, ESG, hydrogen and emerging natural gas technologies are drawing intense investor interest from all sectors,” it added.

“Developers and new capital are coming into the space and need robust data sets to know where to invest and what will yield the best returns,” it continued.

To contact the author, email andreas.exarheas@rigzone.com


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Andreas Exarheas
Editor | Rigzone