Special purpose acquisition companies (SPACs) shot to prominence in 2020 due to their popularity in the US tech sector.
SPACs have also been enthusiastically embraced (albeit to a far more modest extent) by the energy industry, specifically for renewable power, clean-tech, hydrogen, energy storage, electric vehicle charging and battery technologies – and in more limited cases for conventional power and oil and gas businesses.
Although there is nothing particular about SPACs that lend them to energy company floats, they have been one of many channels through which capital has flowed to the clean energy sector at a time when investors are motivated by commercial opportunities to tackle climate change through energy transition solutions.