Private equity investments in renewable energy soar since the start of the year
Private equity and venture capital investments in renewable energy rose about 144% to $11.92 billion across 33 deals in the year to May 23, from $4.89 billion dollars across 33 transactions recorded during the same period in 2021, according to data from S&P Global Market Intelligence.
The 2022 figure is rapidly approaching the private equity investment for the year 2021 in the sector of $14.66 billion.
The planned $5.79 billion acquisition of ContourGlobal PLC by KKR & Co. Inc. and the proposed approximately $2.82 billion purchase of Albioma were the two largest private equity deals focused on renewables announced so far in 2022. The pending $2.28 billion acquisition by HAL Investments BV of the rest 53.8% stake in Royal Boskalis Westminster NV came third.
Private equity firms have focused on energy transition companies as traditional energy investments over the past 10 years have produced low returns and investors are looking for alternatives to fossil fuel investments to offset carbon emissions. carbon, law firm Reed Smith said in its Energy and Commodities Outlook 2022 report.
From January 1 to May 23, renewable energy companies based in the United States and Canada received $6.62 billion in funding rounds involving private equity and venture capital firms. Companies from Asia-Pacific and Europe pulled in $1.24 billion and $950 million, respectively.
Fifty-five renewable energy funding rounds have been announced in the United States and Canada. Europe saw 45, while Asia-Pacific saw 28 funding rounds. There were two in Africa, as well as in Latin America and the Caribbean, and one in the Middle East.