An Oil and Gas Leader Creates a New Clean Energy Business
We helped build plans, launch, and set ambitious targets for this independent entity.
A leading oil and gas company wanted to create a clean energy solutions business. Within just nine months, we helped them design and launch CleanEnergyCo*, an independent entity that promises to produce substantial financial returns while contributing to the reduction in greenhouse gas emissions.
Through a robust value creation plan, we helped CleanEnergyCo secure seed funding to build the foundation of the business, design a zero-based operating model, and nurture a dynamic company culture built around Agile working methods.
CleanEnergyCo’s parent company had long aspired to lead the energy transition and meet the emerging needs of its customers. It had dabbled in renewables and hydrogen fuel, but its efforts in these areas had not achieved scale. The parent company’s leaders envisioned an independent clean energy business that could operate with a new level of innovation and speed.
Working collaboratively with the parent company, our team helped define the core principles, structure, and financial plan for CleanEnergyCo. The parent company selected top talent to join the landing team that would jump-start the endeavor. Experts from Bain Academy provided training in the Agile methodologies that have proven to catalyze progress at start-ups and other new ventures.
With the talent thus mobilized, CleanEnergyCo set up its headquarters and began working with us on a comprehensive value creation plan.
There were three main pillars to CleanEnergyCo’s ambitions: renewable energy (e.g., solar, wind, and storage), green mobility (electric vehicle charging and fleet management), and clean hydrogen (production and distribution).
In each of these areas, we established clear pathways for CleanEnergyCo to become a market leader within the next decade. In each pillar, we helped the company design a detailed operating model with flexible structures, talent acquisition strategies, clear governance processes, and frameworks that encourage an innovation culture.
To accomplish all this, we applied our expertise across many different areas, including venture building from Next and access to the Bain Innovation Exchange, an ecosystem of investors and developers supporting next-generation solutions. We introduced CleanEnergyCo to a series of Bain ecosystem partners and advisers, including a start-up that uses data analytics to identify the optimal locations for electric vehicle (EV) charging hubs.
A core principle of building new ventures is not overdesigning for perfection; CleanEnergyCo is set up with a lean organizational structure, filling critical roles at the outset, with a defined process to ramp up gradually as the business grows.
Upon its launch, CleanEnergyCo received a formal endorsement from the national government of the parent company. The company has activated the first EV chargers in its network, acquired stakes in multiple renewable energy projects and developers, and partnered with off-takers to produce and sell low-carbon hydrogen.
The strong growth potential and robust value creation plans have led the company’s leaders to expand their long-term ambitions for CleanEnergyCo, multiplying their targets by a factor of five or more. Over the next 8 to 10 years, we expect the company to be one of the world’s top producers of clean energy.