Maarten Wetselaar appeared to be on a tight schedule when he became the CEO of Cepsa, a Spanish energy firm, in January 2022. Just two months into his new role, the former Shell executive revealed an ambitious plan to change Cepsa, officially known as Compañía Española de Petróleos SA, into a top player in renewable energy in Europe.
Last month, Wetselaar took another significant step in this transformation by announcing a new name and branding for the company: Moeve. This change signals a decisive shift in the company’s direction.
Many other fossil fuel companies have also made similar changes, like Norway’s Statoil, which rebranded itself as Equinor to reflect its transition away from hydrocarbon dependence.
Wetselaar’s efforts to reform the company began before he even started as CEO. He shared that his appointment was preceded by extensive conversations with Cepsa’s shareholders. This led to a deep understanding of the company’s operations, enabling his team to launch their new strategy—dubbed Positive Motion—almost immediately.
Before his official start, Wetselaar had a strong sense of the company’s future direction. He expressed his enthusiasm for the chance to drive such a significant transformation within a single leadership term.
Currently, Moeve, owned by Abu Dhabi’s Mubadala and the Carlyle Group from the US, is well into this strategy. In just over two years, it has sold nearly 70% of its oil assets, a clear indicator of its commitment to renewable energy.
Moeve’s ambitions are notable; it aims to demonstrate how Europe’s oil and gas sector can pivot towards sustainability and contribute to the European Union’s goal of achieving net zero emissions by 2050. The company benefits significantly from favorable regulations and Spain’s natural resources, particularly its sunny and windy climate that is advantageous for renewable energy production.
Mikhail Davydov, a credit analyst at S&P Global Ratings in Madrid, emphasized that Moeve’s strategy is built on regulatory support and the ongoing energy transition. The firm is strategically positioned to leverage Spain’s abundant renewable energy potential.
Moeve plans to derive the majority of its profits from renewable sources by the end of the decade, channeling €3 billion towards establishing two green hydrogen production facilities in southern Spain, capable of producing up to 300,000 tonnes of green hydrogen annually. The company is also shifting its chemical manufacturing toward more sustainable products, including materials for biodegradable detergents.
Pablo Fernández de Mosteyrín, a financial analyst, noted that Moeve is setting its sights higher than many peers, targeting a net positive emissions status beyond 2050. While many oil companies have focused on expanding their renewable energy portfolios, Moeve aspires to take a step further.
Despite facing skepticism from some investors regarding the shift from hydrocarbons, Moeve remains undeterred. Global oil markets have recently shifted, with rising oil and gas prices leading to a renewed interest in traditional fossil fuel investments, particularly after the Russian invasion of Ukraine sparked concerns over energy security.
This backdrop poses challenges for Moeve, particularly as the company plans to invest approximately €8 billion this decade into products that some investors may view with caution. Failure in this ambitious strategy could have repercussions for Moeve’s financial health and credit rating.
Nevertheless, Wetselaar maintains a positive outlook. During the company’s rebranding announcement, he stressed that Moeve’s transformation is a solid response to the realities of the energy transition. He believes that the company’s private ownership allows it to focus on long-term goals without being distracted by immediate shareholder demands.
Wetselaar emphasized the urgency of shifting from fossil to green energy, asserting that there is no viable future without this transformation. The pace at which Moeve is moving may be better suited to a privately held company compared to those with extensive public shareholder bases.
In summary, Moeve is making significant strides towards a greener future, pushing forward with its vision to lead in renewable energy despite the challenges ahead.