SPAC plans to raise £175M to invest in energy transition companies

Ex energy minister Amber Rudd is among the advisors to a new company formed to invest £175 million in ‘energy transition’ companies. The company will aim to acquire businesses in Europe in: the hydrogen value chain; green ammonia; carbon capture, utilisation and storage; new generation sources of clean fuels; digitalisation and energy efficiency; and distribution and transmission of clean fuels.
New Energy One Acquisition Corporation Plc said it would float on the London Stock Exchange and raise up to £175 million through a share offering.
Oil and gas company Eni is among the new company’s sponsors and has said it will subscribe for at least 10% of NEOA’s ordinary share capital. Eni said it has “a dedication to the energy transition and has committed to a net zero target by 2050”.
Sanjay Mehta, Executive Director, said, “We are proud to be launching NEOA as the first SPAC listed on LSE focused on driving the energy transition. In order to achieve the net zero targets that have been set globally, and recommitted at COP26 in Glasgow, we need to supercharge decarbonisation of industrial processes, decarbonisation of fossil fuels and produce transition fuels – blue hydrogen, green hydrogen, green ammonia at commercial scale and price point. NEOA as a SPAC provides an innovative investment asset class with the capital and industry expertise to invest in leaders that are integral to accelerating the journey towards net zero commitments.”
David Kotler, Executive Director, said: “With strong government support across Europe and a considerable pipeline of companies focused on the decarbonisation of fossil fuels, we see great potential in the sector for a business combination.”
The strategic rationale for the launch is that the energy transition will have a fundamental impact on the energy sector, the directors say. A reduction in carbon emissions from existing sources of electricity generation is essential, but the directors believe that achieving carbon neutrality, or “net zero”, will require changes beyond power generation. “The directors and the leadership at NEOA believe that significant investments in technology, transition alternative fuels and infrastructure focused on decarbonisation of fossil fuels” will be needed to meet net zero targets.
The new company’s strategic advisers are Sir Peter Gershon (former chair of National Grid), Amber Rudd (previous minister and secretary of state at the then Department for Energy and Climate Change) and Randy Chen (vice chair at Wan Hai Lines).

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