The energy transition
One of the greatest challenges of our time.
One of the greatest challenges of our time.
The transition from fossil fuels to cleaner, more sustainable, and renewable sources of energy is driven by a need to halt climate change, reduce pollution, and improve energy security. While advancements in technology are making renewable energy sources more cost effective and accessible, the increasing global demand for energy means that the world is going to require the supply of all forms of energy as it transitions.
The future of the global energy system is one that better satisfies the energy trilemma; the balancing of three dimensions so that energy supplies are secure, equitable and environmentally sustainable. The role of trading companies in the energy trilemma is often overlooked, or at best misunderstood, despite having a key role across all three elements.
The need for energy supplies that are reliable and can withstand and bounce back from shocks.
Our global trading activities mean we can identify sources of energy supply and ensure they arrive when and where they are needed. We work with partners around the globe to develop both traditional hydrocarbons, and lower carbon energy sources, through financing, off-take agreements, hedging, and risk management, and then deliver them to market.
The requirement for everybody to have access to reliable, affordable, and abundant energy.
The physical commodity sectors in which we operate can become fragmented and volatile, resulting in price discrepancies between geographic locations or time periods. By providing pricing transparency and extending financing that might not otherwise be available, we can help to create a market, close pricing gaps and facilitate the rebalancing of market fundamentals.
Having an energy system that minimizes potential environmental harm and climate change impacts.
We invest in, and develop, new forms of low carbon energy and help to establish and stimulate carbon markets. We innovate to encourage lower carbon energy production and transportation, and improve product traceability to ensure they are responsibly sourced.
Historically, our focus has been predominantly on investments in upstream and midstream oil & gas assets. We believe there will remain a critical role for us to play in the responsible management of existing hydrocarbon assets, in order to satisfy the world’s need for secure, safe, and affordable energy today, whilst also enabling the transition to more sustainable forms of energy tomorrow.
Mercuria plays an active role in shaping the future of the energy system by promoting sustainability and investing in technologies and infrastructure that advance the transition to a low-carbon economy.
We are a private company, who can act with speed and scale. We have committed that half of our investments will be in all parts of the energy transition by 2025. We are well ahead of this goal and have invested in over 50 different companies that are projected to generate significant CO2 reductions and removals, including:
Innovative new companies that offer green mobility, including electric vehicle charging and vehicle-to-grid services.
Large-scale renewable power projects, including a deal pipeline that is nearing 10 GW.
Companies that convert biomass or non-recyclable waste into alternative fuels or raw materials.
Carbon-capture projects and nature-based solutions, including our Silvania investment vehicle.
In addition to our investments, we are also continuing our efforts to advance the energy transition in other ways. For example, we are at the forefront of developing new markets for low-carbon energy commodities, such as carbon credits and renewable energy certificates and we provide financial support and technical solutions to help our partners and customers to meet their net zero targets.
We are also committed to promoting transparency, standardization, and a level playing field in the industry and support initiatives and opportunities to work with our stakeholders and industry peers, that enable positive environmental, market, and technological transformation to advance the commodity trading industry.
We have set ambitious targets to reduce our own carbon footprint and to protect and restore nature. We are also helping to improve energy security and sustainability in supply chains by sourcing sustainable biofuels, reducing emissions from shipping, and investing in nature based solutions such as forest preservation and reforestation projects.
Our environmental products team works with our clients and partners to create bespoke solutions that help companies to meet their short and medium term net zero targets.