Nabors Industries lays down investment details in its decarbonization efforts pointing to investments in three leading-edge geothermal companies, Geo-X Energy, SAGE Geosystems and Quaise Inc.
In the last couple of months, we reported on investment and interest by oil and gas players in the geothermal sector. Companies across the oil and gas value chain have set aggressive decarbonization goals; now the industry needs the tools to achieve them.
In a press release before the weekend, Nabors Industries (NYSE: NBR) a provider of advanced technology for the energy industry, introduced Nabors Energy Transition Solutions (NETS), a fast-growing portfolio of technologies designed to drive energy efficiency and emissions reductions for the Company and third-party customers.
To date, the line-up includes proprietary emissions reporting and analytics software, engine management controls, energy storage systems, hydrogen injection catalysts, carbon capture technology and fuel enhancing additives, as well as traditional high-line power and dual-fuel offerings, all of which are intended to establish Nabors’ fleet as the cleanest and most efficient in the industry.
Looking ahead, the Company expects to extend these technologies beyond drilling to the broader upstream segment. Nabors is also exploring opportunities to extend certain solutions beyond oil and gas to other industries, such as to the hundreds of thousands of engines used today in maritime applications and power generation.
Building Lower Carbon, Energy Transition Businesses
Given Nabors’ large number of relationships with suppliers and customers driving the transition to clean energy, the Company has engaged in venture investment opportunities to enter several high growth potential segments in these emerging lower carbon markets. Initial targets include alternative energy sources such as geothermal and hydrogen, energy storage and carbon capture, including utilization and sequestration technologies. These efforts fall within the Nabors Energy Transition Ventures (NETV) group.
To date, the Company has partnered with three leading-edge geothermal companies, Geo-X Energy, SAGE Geosystems and Quaise Inc, to deepen its existing geothermal experience and evaluate new commercial business models. Nabors is leveraging its global footprint, extensive knowledge of subsurface conditions and expertise in well construction to advance and accelerate geothermal technologies and projects globally.
Finally, Nabors continues to assess a significant number of energy transition opportunities for its portfolio. Notably, on November 16, Nabors Energy Transition Corp. (NETC), a recently formed special purpose acquisition company and an affiliate of Nabors, raised $276 million in an initial public offering and is trading on the New York Stock Exchange under the symbol “NETC.U”.
NETC was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. It intends to pursue an initial business combination target in the energy transition space.
Anthony G. Petrello, Nabors Chairman, CEO and President, said: “Our people and technologies have enabled the energy industry to achieve ambitious goals and deliver substantial operational efficiency gains. Now, as society faces its most daunting challenges – simultaneously addressing climate change, decarbonizing the economy and accessing responsibly, more affordable, reliable energy than ever before – we’re doing our part and innovating the future of energy.”
William Restrepo, Nabors Chief Financial Officer, stated: “As we enhance our business portfolio by reaching for new energy transition opportunities, we remain firmly committed to responsible capital discipline and debt reduction. Our continual focus on drilling automation and digitalization is fully aligned with the objectives of improving today’s energy landscape as well as responding to the world’s increasing sustainability concerns. We anticipate continued growth and innovation in our current business. At the same time, we view the current expansion to our overall strategy as an exciting opportunity to generate compelling incremental returns for Nabors.”
Source: company release