Smart Energy Finances: Eni’s €2.2bn share buyback programme and grid smartening for investments

Leading this week’s finance column is Italian energy company Eni’s announcement of a €2.2 billion share buyback programme. Also on the radar are a Series B funding round of $50 million for a Swiss-based robotic solution – which credits the utility industry as a major driver – and KPMG China’s latest report, which looks into how smartening the grid has been opening investment opportunities.

Eni’s €2.2 billion share buyback

Rome-based energy company Eni has announced the first tranche of a share buyback programme, totalling €2.2 billion ($2.4 billion).

The First Tranche will concern up to a maximum of 62 million of Eni’s shares (approximately 2% of share capital), up to a total maximum of €1 billion ($1.1 billion) and to set up a share portfolio to serve extraordinary financial transactions, as for example convertible bond issues.

The purchases will be executed on the Euronext Milan through an authorised agent, who will act independently.

The share buyback will be executed over a period of 12 months and may be increased to a total maximum of €3.5 billion ($3.8 billion), in case of upside scenarios.

Therefore, after the First Tranche, a further phase of purchases will be launched to complete the overall planned buyback program.

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Series B for utility-driven robotics

ANYbotics, a Swiss robotics developer, has announced a $50 million Series B funding round led by international deep tech investors Walden Catalyst and NGP Capital with participation from Bessemer Venture Partners, Aramco Ventures, Swisscom Ventures, Swisscanto Private Equity alongside other existing investors.

The investment comes as demand for robotic solutions surges in heavy industries such as utilities, as well as oil & gas, chemicals, power, mining and metals & minerals.

Faced with an ageing workforce and labour shortages, these industries increasingly rely on innovative robotics solutions to streamline operations, reduce environmental impact and increase worker safety.

The funds will be used to scale the company’s deployments internationally, fuel the development of new capabilities, and enhance its position in robotic inspection solutions.

According to ANYbotics, their ANYmal robot platform returns value in operational deployment and is used by market leaders such as PETRONAS, Shell, SLB, Outokumpu, Siemens Energy, BASF and Vale.

“This funding validates our unique approach to addressing fundamental challenges of operating complex industrial facilities,” said Péter Fankhauser, ANYbotics co-founder and CEO. “Our legged robots have already proven their value in increasing productivity and safety.

“With this investment, we will expand internationally and accelerate the development of our robots’ AI capabilities such as manipulation for maintenance work to revolutionize automated industrial operations.”

‘Smartening’ the grid is driving investments

KPMG’s report, Smarter Grids: Powering decarbonisation through technology investment, examines the policies that support smart grids’ implementation and the investments incentivised by these enabling policies.

Wei Lin, partner and head of ESG for KPMG China, commented on the report’s findings: “Energy independence and the need to decarbonise the economy by progressively moving away from fossil fuels reliance is a key policy and business opportunity driver.

“Many countries not only have strategic roadmaps for expanding renewable energy generation, but they are also charting pathways for alternate energy options including green hydrogen and energy storage. These changes have contributed to the renewed urgency to strengthen the electricity grid.”

Ebele Angela Onyeabo, associate director of climate and sustainability at KPMG China, added how “sustainable finance is increasingly targeting the clean technologies of the future.

“Banks, asset managers, institutional investors, utilities and corporates are in many ways exploring opportunities for decarbonising their portfolio as well as their processes. Investing in and integrating smart grids technology offers a clear path to substantial carbon reduction critical to energy transition.”

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China’s vertically integrated market

The report looks at the cases of the UK, US and, of particular interest, China.

Reliable electricity, states KPMG China – a subsidiary of the global consulting firm – is critical to economic growth in the country, which generated over 8,500TWh of electricity last year, accounting for one-third of global output.

State-Owned Enterprises (SOEs) dominate the investment landscape.

Specifically, the SGCC (State Grid Corporation of China) – the country’s biggest market player and the largest electric utility company in the world – has been upping investments into electricity networks and transmission lines over the years, upscaling smart grid compliant UHVDC (Ultra High Voltage Direct Current) and flexible AC transmission lines.

They have also focused on advancements in distribution smart grid infrastructure to foster demand side management and drive uptake in electric vehicle, vehicle to grid and smart metering technology.

Through such investment, the report puts forth how ‘smartening’ the grid has benefited from access to green finance in China, which has resulted in greater access to green bonds and other financial tools, which the report states are critical for enabling the country to achieve its carbon neutrality goals through energy efficiency.

Increasing interconnection between domestic and international policies, they state, has also sped up growth of a “transparent, standardised green bond market, enabling key players to attract private investment through various financing tools.”

Variability within the country’s vertically integrated market, they add in the report, allows for the inflow of private investments to support smart grid development.

Additionally, according to KPMG’s 2022 CEO Outlook, based on a survey of over 1,300 global CEOs, long-term digital transformation and ESG make up two of the top four trends impacting businesses globally.

Smart grids, they state, straddle these two issues in a way that impacts stakeholders across sectors.

For the latest in finance and investments announcements coming out of the energy industry, make sure to follow Smart Energy Finances, our weekly column.

I will also be attending European Sustainable Energy week (EUSEW) from 20 to 23 June in Brussels, Belgium. Will I see you there?

Cheers,
Yusuf Latief
Content Producer, Smart Energy International

Follow me on LinkedIn