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USD (2018) billion 4,5 Non-traditional energy companies
4,0
Other
3,5
3,0
2,5 ICT and electronics
Transport
2,0
1,5 Batteries
1,0
Traditional energy companies
0,5
0,0 Energy equipment & service suppliers
Average 2012 2013 2014 2015 2016 2017 2018 2019
2007-11 YTD Utilities and IPPs

Oil & gas
Note: ICT = information and communication technology. Deals types include grant, seed, series A, series B, growth equity,
private investment in public equity (PIPE), coin/token offering and late-stage private equity. Unless otherwise stated, deal
value is shared equally between multiple investors in a single deal. Source: Cleantech Group (2019), i3 database and IEA Figure 1
analysis.
ly happening? World Energy Investment 2019 has For example, the purpose of an investment might
already looked at companies that are allocating be to learn about a technology, acquire human ca-
revenue to investments in energy technology start- pital, or build a relationship with the owner of the
ups. Now that we have added the results for the technology. This approach can cost less and invol-
first half of 2019 to our improved and updated ve less risk than developing a technology in-house,
database of investors, we see that companies have especially if the technology landscape is uncertain,
already invested a record level in energy techno- as it is today in many parts of the energy system.
logy start-ups in 2019, more than in any year since This approach is often used with technologies that
the “cleantech boom” from 2005 to 2012. Some are outside the core competence of the corporate
of this is Corporate Venture Capital (CVC), which is investor but that could potentially add signifi cant
the subset of early-stage VC activity that comes di- value to existing businesses.
rectly from large companies in related sectors, and However, the most recent data reveals that the
not from dedicated VC funds or fi nanciers. Some earliest, and riskiest stages of corporate venture
of it is later-stage investing, such as corporate-led capital represent a declining share of the total deal
private equity or acquisitions (Figure 1). value. In fact, Seed, Series A and Series B funding
was just 10% of total corporate spending in 2019,
Corporate investors are not with the rest made up of growth equity, late-stage
equity and even buy-outs.
just energy companies Examples of these later stage deals include: Che-
vron and BHP’s investment in Carbon Engineering,
Importantly, these investments in energy technology an atmospheric CO removal firm; Johnson Controls’
2
start-ups are not just coming from energy compa- investment in Carbon Lighthouse, a smart energy
nies. More money is fl owing from corporate investors effi ciency service; Suncor’s investment in Enerkem,
from the transport and information and communica- a waste-to-biofuel company; VW, Siemens, Vestas
tion technology (ICT) sectors in particular. and Vattenfall’s investments in Northvolt, a battery
The growing presence of these fi rms in the deve- producer; Hyundai, Kia and Porsche’s investments
lopment of energy technologies refl ects a blurring in Rimac Automobili, an electric sports car company;
of the boundaries between “traditional” and “non- Ford and Amazon’s investment in Rivian, a maker of
traditional” energy companies, largely driven by the electric vehicles; Daimler and Amperex’s investments
types of new technologies that are expected to in Sila Nanotechnologies, a battery materials com-
shape our energy future. Digital sensors, batteries, pany; and BP’s investment in Solidia, a low-carbon
electric vehicles and smart algorithms are among concrete developer.
the main recipients of the more than USD 4 bil- In addition, there is evidence that major energy
lion of deals in 2019. This is more than all of 2018 companies are building capacity in new areas not
and nearly three times more than the average over only by taking stakes in innovative fi rms but also,
2012-15, before the current uptick began. increasingly, by acquiring them. In 2019, Shell
acquired virtual power plant, home battery and
Corporate investment: low- electric vehicle charging companies. Others, like
Centrica, continue to build portfolios of consumer-
risk knowledge acquisition facing companies with software expertise.

Companies inside and outside the energy sector
are increasingly using corporate venture capital in- …but energy fi rms are taking
vestments as part of a fl exible and more open energy early-stage investment risks
innovation strategy. As we’ve noted previously, there
are several reasons large established companies pro- While corporate entities are investing mostly in
vide capital to early-stage technology companies. later-stage deals overall, traditional energy compa-

Impiantistica Italiana - Novembre-Dicembre 2019 29