According to the "Nihon Keizai Shimbun" reported on August 26, British Petroleum (BP) and other overseas oil giants have acquired new energy companies. This is because of high oil prices, the amount of funds available to oil giants increased. In addition to European companies, American companies that previously held a negative stance on renewable energy, etc., are also beginning to take action. The companies will accelerate the transformation of the profit structure dependent on fossil fuels, but the stock market is not high evaluation of renewable energy investments that are difficult to generate short-term benefits. Companies struggle to find a balance between promoting decarbonization and striving for maximum profits.

　　"We are moving faster toward the goal of establishing a cost-competitive global (hydrogen) production base." BP Chief Executive Bernard Looney expressed his enthusiasm for launching the hydrogen business, which is expected to become a major energy source for the next generation, at a financial results presentation on the 2nd.

　　In July, BP contributed 40.5 percent to the Asian Renewable Energy Centre, which makes hydrogen from wind and solar power in Australia, the report said.BP did not disclose the amount of the acquisition, and the Asian Renewable Energy Centre project, which was launched in 2014, is $36 billion in size.

　　BP has set an ambitious goal of gaining a 10 percent share of the global hydrogen market. Looney said, "The Asian Renewable Energy Center has the potential to become one of the largest renewable and green hydrogen centers in the world." He stressed that this investment is crucial to achieving the goal.

　　France's Total Energy announced in May that it would acquire a 50 percent stake in the Clearway Energy Group for $1.6 billion in cash. Clearway Energy Group is the fifth largest renewable energy company in the United States, with a strong presence in wind power. Total has made a series of moves, announcing in April the acquisition of Core Solar USA and in February the acquisition of SunPower's commercial and industrial solar power business.

　　Total set a target of 100 million kilowatts of renewable energy generation capacity by 2030, but only 11.6 million kilowatts as of June this year. This is difficult to achieve with R&D alone, and it aims to increase generation capacity through successive acquisitions.9 Shell completed the acquisition of Indian renewable energy startup Spunge Energy, which has a presence in solar power and other projects. The companies are in sync when it comes to the money-for-time strategy.

　　Reports indicate that large U.S. companies, originally thought to be more reluctant to decarbonize than European companies under strong shareholder and government pressure, are now beginning to act. Chevron announced in June that it had completed its acquisition of the U.S. Renewable Energy Group, for a total purchase price of $3.15 billion.

　　The head of Chevron has made it clear that "even participating in wind and solar power does not create value for shareholders." This is interpreted by the industry as its different posture from European companies.

　　The U.S. renewable energy group conducts light oil and jet fuel businesses made from waste oil and vegetable oil. Against a backdrop of increased environmental regulation, Chevron has set a goal of reaching the equivalent of 100,000 barrels of oil per day of renewable fuel production capacity by 2030. The acquisition allows it to secure a third of the target.

　　The background factors for the oil giants to step up their mega-mergers are the high oil prices and the relatively abundant funds on hand. Oil prices are currently down slightly but are still at 1.5 times their December 2019 levels (before the New Crown outbreak). Chevron's cash and cash equivalents at the end of June doubled from December 2021 to $12.029 billion.

　　However, the stock market is more inclined to welcome short-term shareholder returns such as dividends and purchases of its own stock than investments in next-generation energy. Among five large companies in Europe and the United States, Exxon Mobil Corporation, which values huge shareholder returns, has seen the highest share price increase of 55% since the beginning of the year. Actively transformed to a new generation of energy European companies share prices rose by only about two or three percent.