LEADING North Sea oil services entrepreneurs have highlighted the potential for Scottish businesses to capitalise on the drive to cut carbon emissions by launching a multi-million pound fund that will support hopefuls working in areas such as renewable energy.
Doug Duguid and Michael Buchan expect their Indigo 7 Ventures operation to play a part in the transition to a lower carbon energy system by investing in innovative technology companies.
READ MORE: North Sea clean energy transition could create 200,000 jobs finds expert report
The investment business will focus on early stage firms. Renewables will be a target sector.
“The energy industry is changing and it is clear that over the next few decades we need to move away from traditional hydrocarbon production and manage energy transition into renewable sources,” said Mr Duguid.
He added: “Scotland in many respects is a world leader in renewables but it needs people with smart ideas to genuinely drive forward our energy transition, and I7V will play its part by investing in innovative technology companies which can facilitate that change,”
The founders expect to be able to be able to draw on the lessons they learned developing Enermech and PSL into international success stories to help firms they invest in to become global players.
READ MORE: Aberdeen oil services firm sold in blockbuster deal
They are also confident they can enjoy success in the emerging clean energy sector in their own right.
In addition to supporting early stage firms, I7V will launch its own renewables services, inspection and repair business targeting the wind, solar and hydrogen energy markets. It will aim to become an international player.
Mr Duguid and Mr Buchan founded the Enermech business that was bought by US private equity giant Carlyle in 2018, in a deal that was thought to be worth around £450m.
Enermech provides services ranging from crane rental to subsea pipeline maintenance.
Before launching Enermech, they led the PSL pipeline and well engineering firm. This was acquired by US oil services heavyweight Halliburton for £128m in 2007.
READ MORE: Oil firm eyes North Sea acquisitions as slump sees 'multiple packages' put up for sale
Mr Duguid noted the difficulties that early stage firms traditionally face in raising funding have been compounded by the slump triggered by the fallout from the coronavirus crisis.
Aberdeen-based I7V would be prepared to invest from £100,000 in the firms it decided to back.
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