Oil and Gas Sector Sizzles: Top 5 Equity Deals of Q2 2024

The oil and gas sector are buzzing with activity as equity deals gain momentum. This is because this year has witnessed a good volume of investments, underscoring a vibrant market keen to drive energy innovation and navigate the shifting trends. From major acquisitions to key partnerships, these deals are influencing the future direction of the energy industry.

Deal Activity Sees Slight Uptick with Focus on Sustainability

According to S&P Global, in the recent quarter, the oil and gas industry recorded 85 whole-company and minority-stake deals, totaling $43.93 billion. This represents a modest increase from the same period in 2023, which saw 81 deals valued at $43.82 billion.

source: S&P Global

The growing deal activity highlights a trend toward integrating environmental sustainability into the industry’s investment strategies.

Q2 2024’s Top 5 Oil and Gas Tech Equity Deals: CB Insights Snapshot

The following companies have topped the list released by CB Insights this year.

1. HIF Global Secures $164 Million Investment for eFuels Projects

Highly Innovative Fuels (HIF) Global, the electrofuel giant secured a $164 million investment this May to fund its eFuels projects from its existing shareholders and a new partner, Japanese energy company Idemitsu Kosan. Total funding goes to $424 million.

Cesar Norton, President & CEO of HIF Global, expressed enthusiasm about the partnership, stating,

“We are excited to welcome Idemitsu as a new partner in our mission to power the world with renewable energy. This collaboration goes beyond financial support; it symbolizes our shared commitment to a greener future. We’re grateful to our shareholders for their continued support as we develop eFuels facilities globally that could recycle 25 million metric tons of CO2, equivalent to the emissions of over 5 million cars.”

Susumu Nibuya, Executive Vice President, and COO of Idemitsu Kosan mentioned that Idemitsu is concentrating on e-methanol, blue ammonia, and sustainable aviation fuel (SAF) to achieve carbon neutrality by 2050.

This investment marks the first step in a broader four-part collaboration, which includes financial backing, eFuels purchase agreements, market development in Japan, and establishing CO2 supply chains.

2. ICEYE Secures $136M in Series D Funding Round

ICEYE Ltd. is a Finnish company and a spin-off from Aalto University’s Radio Technology Department makes microsatellites. Precisely it is a leader in synthetic aperture radar (SAR) satellite technology. This April, it secured $93M in growth funding to expand its SAR satellite constellation and product offerings.

This oversubscribed round builds on the company’s February 2022 Series D, bringing total funding to $438M. ICEYE experienced strong growth in 2023, ending the year with over $100M in revenue. The new funding will drive the next phase of expansion, focusing on:

Increasing demand for its Missions business, with growing interest from governments for defense and civil applications using next-gen SAR satellites.
Expanding SAR data services to offer innovative products for tracking Earth’s changes, day, or night, in any weather.
Accelerating growth in its Solutions offerings, with significant investment in Flood Insights, Wildfire Insights, and future peril-based analysis for government and commercial use.

CEO Rafal Modrzewski emphasized the support from new investor Solidium, highlighting trust in ICEYE’s mission to lead the global SAR market. The company’s achievements and clear targets intensified investors’ faith. Notably, the deal was facilitated by Citigroup.

3. Aether Fuels Raises $34M to Revolutionize Sustainable Aviation and Shipping

Aether Fuels, a leader in climate technology, secured $34 million in Series A funding from a global group of investors. AP Ventures led the round, joined by Chevron Technology Ventures, CDP Venture Capital, and Zeon Ventures. Previous investors, including Xora Innovation, TechEnergy Ventures, Doral Energy-Tech Ventures, Foothill Ventures, and JetBlue Ventures, also participated.

With this funding, Aether aims to speed up the development of Aether Aurora, its advanced technology for producing sustainable aviation and shipping fuels.

The press release further highlighted that Aether Aurora with its partner GTI Energy will use Fischer-Tropsch’s advanced process to boost fuel production and make it cost effective. This flexible technology can turn different types of waste carbon into jet fuel and other liquid fuels, solving supply issues that other sustainable aviation fuel methods face.

Aether Aurora’s unique ability to create sustainable fuels from any feedstock:

source: Aether

Significantly, Aether will also use the new funding to expand its R&D and plant capacity in the U.S. and Southeast Asia for SAF and other liquid fuels in partnership with strategic allies.

4. SENCO Invests in Strohm with $32M Equity Surge in Thermoplastic Pipeline Innovation

This year, on June 19, SENCO Hydrogen Capital, a private equity firm known for its focus on hydrogen and energy transition investments, announced a significant $32 million (€20 million) equity investment in Strohm, a Dutch company renowned for its innovative pipeline technology, which they call it Thermoplastic Composite Pipelines (TCPS).

The funding aims to boost Strohm’s growth, particularly in hydrogen and carbon capture utilization and storage (CCUS). This partnership is also focused on reducing the carbon footprint of pipeline infrastructure, aiming for a more sustainable energy future.

Martin van Onna, CEO of Strohm says,

“Strohm is a pioneer in the development of TCP and has set itself the goal of significantly reducing CO2 emissions in the pipeline infrastructure sector. “The partnership with SENCO enables us to further scale our technologies and continue our successful expansion, especially in the field of energy transformation around hydrogen and CCUS”

This deal is part of a broader €30 million capital increase in Strohm, with existing shareholders like Chevron Technology Ventures, Shell Ventures, and Evonik Venture Capital also participating. Together, these companies are advancing innovative technologies that support low-carbon energy solutions.

5. LiveEO Raises $27 Million to Revolutionize Climate Risk Management

This June, LiveEO, a leader in transforming satellite data into actionable insights, has raised $27 million (€25 million) in a Series B funding round led by NordicNinja and DeepTech & Climate Fonds (DTCF). This investment will accelerate the development of LiveEO’s AI-driven solutions and expand its team.

NordicNinja is the largest Japanese-backed VC in Europe, and it is focused on deep tech, climate tech, and digital society solutions. DTCF is financed by the German Future Fund.

LiveEO turns raw satellite data into insights that help businesses manage climate risks and improve resilience. The platform is trusted by major companies like Deutsche Bahn and Network Rail to monitor and protect assets. The new funding will further enhance LiveEO’s mission to make industries more sustainable while addressing climate challenges.

Daniel Seidel, co-founder, and co-CEO of LiveEO, elaborated on the company’s mission to leverage satellite data for planetary protection and industrial sustainability. He noted that the new funding will accelerate this mission, helping businesses worldwide navigate climate, environmental, technological, and regulatory challenges.

MUST READ: The Top 4 Venture Capital Climate Companies: How Are They Shaping the Green Future?

However, CB Insights had a complete list of companies that secured good investments and contributed to a fruitful quarter this year.

Global Funding & Deals: Regional Insights

As we can see from the image Europe dominating the space in Q2 2024, with 9 massive deals totaling to $0.2 billion followed by Latin America.

The strategic investments made this year clearly outlines a bright future for the oil and gas industry. As sustainability gains traction across various industries, the significant advancements in natural energy resources and technology will undoubtedly reduce carbon emissions and create a greener world.

FURTHER READING: ExxonMobil Q2 Highlights Stellar Profits and Reduced Emissions

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