The technology required to advance the energy transition is being invented every day. And start-up companies are at the heart of many of the most exciting developments. With the most to lose from the energy transition, the oil and gas Majors have taken notice.

In a recent insight, The Majors’ venture capital strategies for the energy transition, we explored the Majors’ venture capital strategies for insight into how they see the future of the energy transition.

Why do the Majors invest in start-ups?

The Majors benefit in multiple ways from investing in start-ups with new technologies. They gain insight into where innovative new technologies can be applied directly to their business to build new revenue streams. They get an inside view of new and emerging technologies that could lead to a competitive advantage ahead of their peers. And investment in start-ups gives them a seat at the table in new technology development, without having to take on a lot of risk.

This creates a win-win for both the Majors and the start-up companies.

What technologies are the Majors focused on?

The Majors are invested in start-ups focused on nine areas of the energy transition: power and renewables, new energies, mobility, IT and digitalisation, alternative fuels, carbon management, circular economy, energy efficiency and energy storage.

How many start-ups are the Majors invested in?

The Majors’ strategies are differentiated by the way they develop and test technology at different levels of maturity and the number of start-up companies they have invested in.

Shell leads the Majors in the number of start-up companies invested in. Its broad start-up investment strategy gives it exposure to a wide range of new technologies. This does not include investments in start-ups in incubators and accelerators.
Source: Wood Mackenzie