Investment in the Energy Transition
with Nicolas Piau, Co-founder & Managing Partner, TiLT Capital Partners
Opening Remarks, Nicolas Piau:
Energy transition will be at a crossroads when the world gets out of the current health crisis: will we base the recovery on a sustainable model or will we, once again, justify unsustainable policies and practices with the need to “get growth back on track”? At TiLT we believe that true recovery will be indissociable from responsible business practices, because it will pave the way for long term sustainable economic activity. Energy transition is an absolute must, to answer a much more existential (albeit longer-term) threat than Covid-19: climate change. But the means to achieve this transition are as critical as the end goal. For this reason, we believe that ESG should be embedded in the idea of energy transition and that companies operating in the sector will need, more than ever, to consider not only their positive impact on climate change, but the quality of their relationships with all stakeholders and their contribution to social cohesion.
If we are serious about integrating the fight against climate change as a defining feature of the recovery from this crisis, it means that we also need to start implementing policies and actions now. In TiLT’s view, this means one thing for the energy sector: take coal out of the energy equation. And it should be THE goal of the next decade. The task is herculean and will require innovation, the emergence of new agile players (in particular SMEs), massive investments and leadership. But we believe it is critical, as coal combustion for electricity is 20% of all GHG emissions. And to us, it has another consequence: renewables alone will not allow for the replacement of coal generation, energy efficiency and gas will also have to play a role. In general, TiLT believes that it will not do energy transition any good to ignore the fact that affordable programmable energy – such as the one provided by state-of-the-art gas turbines – is needed to serve demand. We must promote companies that develop more efficient ways to use gas along the whole chain as a means for energy transition in the next decade.
Q: What is it about the energy transition that makes it so attractive to investors?
Renewable energy is a capital intensive sector so by definition there is a need for additional capital, for example the European Commission said it needed up to 550bn euro of investment every year to get to decarbonisation of the economy. In the next 10 years Europe will need to develop significantly its SEMs and Tilt provide growth capital, part of Private Equity that has been fairly forgotten in Europe. Considering Tilt’s three founding partners are from Engie, we can bring value through combining capital and sector experience
Q: The energy solutions that are needed now and in the future lie within SMEs and not within big energy companies. SMEs know what they want to do but not how to do it, do you agree?
Yes, and how Tilt define energy transition is energy efficiency on the one hand (buildings, industrial energy efficiency) and integrations of renewables into the grid. People have been seeing the transition as decarbonising the generation mix but this is only part of the issue and Tilt believe there is value and a need to work on the solution that will help integrate more and more renewables into the grid and at an affordable cost. This is very important because if energy transition leads to increased cost of energy for residential customers or companies, energy transition will fail. This is why we want to support the SMEs that help the system get smarter and more efficient.
Q: How key is technology? Are you mostly looking at SMEs that are coming up with new technologies that will enable the transition?
Yes, so we are looking for example at companies that create digital twins of an industrial process and through that modelling they are able to locate the energy efficiency pockets without disputing the energy process. This is an innovation that has been driven by those SMEs which is very agile and can be deployed very easily. We look a lot at the power/electronic sector which is actually the foundation of all deployments in the energy chain; current conversion for example. The losses you have in current conversion through heat dissipation is a real issue and if you can reduce that, this is a great way to achieve lower energy consumption and that means decarbonisation. Often the innovation is within smaller companies that will probably in time be bought by bigger ones to scale up but we think this innovation eco system lies genuinely in those smaller companies
Nicolas Piau, Co-founder & Managing Partner, TiLT Capital Partners SAS
Nicolas is co-founder and Managing Partner of TiLT Capital Partners. He was most recently SVP in charge of Mergers & Acquisitions for Engie, a Paris based energy company employing over 150 000 people across 70 countries. He’s been working in the field of energy and project development / M&A for the last 13 years, after 5 years in HR working on social sustainability. He is also a First Mover Fellow of the Aspen Institute. He enjoys structuring the small 200 kUSD access to energy projects in Africa as much as the multi-billion power or oil & gas deals in the US or Russia. Currently based in Paris, Nicolas lived in Brussels and Rome and spent a lot of time on transactions in the US, China, Russia, South-East Asia and South America. Sustainability and ethics have been at the core of his motivation, fueled by his graduation in Philosophy and Political Sciences and translated into a PhD in Economics on this topic, earned magna cum laude from Paris-Dauphine university.
You might also be interested in
Griffin Perry, Co-Founder and Managing Director, Grey Rock Energy Partners, joins the Investor Series Podcast to discusses advantages ... read more
Advocaat Law Practice shares information on Financing Options for Marginal Fields in Nigeria. We look at regulatory & commercial ... read more
Dan Pickering joins the Investor Series Podcast and walks us through where he sees future opportunities and why this is a great time to read more
Read the summary of the webinar debate on what the implications might be for the U.S. Oil & Gas industry under the newly elected Biden ... read more
Ahead of WECA 2020, we spoke with Nick Carnrite, Managing Director at The Carnrite Group, on their entrance to the UK market, the ... read more
Avik Dey of CPPIB, joins the Investor Series Podcast to talk about the secular change that is taking place across the industry read more
We know what the target is as well as why we need to achieve it. The question is rather on the how. How do we transform our businesses ... read more
“Investors will go where the money is” remarked one of the Energy Council’s members when asked about the increased pressure on funds to read more
In The News: Institutional Investors Demand Greater ESG Adherence from Oil Majors, Can Independents Pick Up The Pieces?
Institutional funds have increased their pressure on the world’s largest oil and gas companies to further and hasten their commitments ... read more
Glenn Jacobson – Partner at Trilantic Capital Partners – Evolution of the Energy Investment Landscape
Glenn Jacobson, of Trilantic Capital Partners joins the Investor Series Podcast once again to talk about the evolution of the energy ... read more
Mergers and acquisitions are heating up in the oil and gas sector as prices stabilise and quality assets enter the market. Over $20 ... read more
Mark Viviano, Head of Public Equities, Kimmeridge Energy joins the Investor Series Podcast to discuss over the course of this episode, ... read more
A report by the OGTC & Wood Mackenzie highlights the array of opportunities in the United Kingdom's path to decarbonisation & ... read more
The OGCI announced significant progress in reducing both carbon dioxide and methane emissions in the upsteam sector. Industry ... read more
US O&G Independents were already sitting on huge debt levels before the impacts of COVID-19 and the Oil Price War hit. They now face a ... read more
In this webinar debate, we discuss what the implications might be for the U.S. Oil & Gas industry under the newly elected Biden ... read more
As part of the Digital Energy Festival we explored Gas Opportunities in Nigeria with our panel of experts, moderated by Ola Alokolaro ... read more
The second of eight Oil & Gas Council sessions, a digital dialogue, took place on October 29 boasting an exceptional panel of ... read more
The first of eight Oil & Gas Council sessions kicked off on October 27 and industry-leading speakers who have a total of over 100 years read more
Tom Petrie joins the Investor Series Podcast once again to discuss the upcoming US Presidential election & what impact it will have, ... read more
With the US shale industry having been severely impacted by both the COVID-19 pandemic and the oil price war, US investors are ... read more
Nigel Jenvey – Global Head of Carbon Management, Gaffney Cline and Lewis McDonald – Global Head of Energy, Herbert Smith Freehills
In this episode, Nigel and Lewis join us to discuss some of the ESG & GHG related trends and policies in the Oil & Gas Industry and how read more
Read the transcripts of the Oil & Gas Council Investor Series Podcast with Brian Thomas, Managing Director – Energy Finance, Prudential read more
During the episode, Brian talks about how institutional investors like Prudential can provide capital for O&G companies in place of ... read more
We take a look at how the energy sector is progressing with regards to gender diversity and representation at board level read more
Technology and responsible investing will “inevitably be the top two megatrends” of the 2020s, affirms the CEO of independent financial read more
Who will make money in the energy business of the future, and who will fade from the scene? Politics and regulation certainly matter, ... read more
During the episode, Tom talks about the Rise of Putin, the US/China trade war, the competitiveness of US shale, and Middle Eastern ... read more
Leaders from across the Upstream value chain met virtually to discuss how the current crisis compares to the crash of 2014 and what new read more
On 14th April, the Green Recovery Alliance was formed by members of the European Parliament together with ministers, CEOs, NGOs and ... read more
Amidst the daily sobering news which is inevitably focused on the COVID-19 pandemic and struggling societies and economies, there are ... read more
Ken Hersh, Retired CEO and Co-Founder of NGP joins us to discuss ESG, Geopolitics, Supply/Demand Dynamics, and Private Equity in a pre, read more
Participants from the Energy Storage panel, that was due to take place at Mexico Assembly, met virtually to discuss the effects of ... read more
Adam Waterous shares his insights in this Investment focused podcast. Adam discusses his theory of “Peak Permian”, which describes ... read more
Energy transition will be at a crossroads when the world gets out of the current health crisis: will we base the recovery on a ... read more
Part 2 of our takeaways picks up the conversation where we left off as our advisors’ peer into the rabbit hole of climate change and ... read more
World Energy Capital Assembly Advisory Board Takeaways Part 1 March 2020 The Oil & Gas Council Advisory Board met in London late ... read more
Panellists described how the LNG “wave that has arrived” is heralding a final shift away from coal in the EU, which will lead to the ... read more
There are two energy transitions happening. Both are changing the deployment of capital in the oil and gas business. The first is the ... read more