I just did an interview about private equity opportunities in oil and gas with a director of an investment bank.
We got to carbon capture and he screwed his nose up and sort of said, there could be some business opportunity here but we have no idea what it is!
I’ve seen similar sentiment expressed by other investors this year.
How can we make carbon capture look more investable for people like this?
Perhaps 60% of the decision making for private equity is past performance – they won’t admit it because they can’t justify their fees that way but it is probably true! But that means that CCS will struggle to get PE investment,
But what about the other 40 percent – how do we make it worth investing in or convince them to invest in it?
My best answer is that CCS is investable when you consider it is the only way for EU countries to meet their future targets. But that is still a bit too vague for investors.
Can we come up with a better answer?