Galileo Technologies (Galileo), a company that deploys a unique technology to capture natural gas from any source and convert it into LNG onsite, has secured a major cornerstone investment from Helmerich & Payne (H&P), North America’s largest land drilling solutions provider.
H&P invested US$33 million into the company in the form of a convertible note. The convertible note bears interest of 5% per year and is due April 2027. If exercised, the note would convert into common shares of Galileo at an enterprise value of US$1.35 billion.
The companies also plan to identify and pursue business development opportunities which, if successful, have the potential to reduce fuel costs and carbon emissions from power consumption on well-sites. Galileo’s technical expertise combined with H&P’s wide network of drilling sites provides significant opportunity for widespread application of the liquefaction technology in North America.
Well drilling and completion is an energy intensive process and use of Galileo’s technology can enable the monetisation of natural gas from any source (well head, flared, pipeline, stranded) by converting it into low carbon intensive LNG. The converted LNG can be reused on site or transported and stored with ease, creating a virtual pipeline. The use of natural gas as a fuel source is economically and environmentally beneficial, as it is significantly cheaper than other fuels, such as diesel, and has a lower carbon footprint.
Osvaldo del Campo, Galileo’s CEO, commented: “We are excited to align with H&P in this transaction. This investment and the collaboration with H&P will contribute to continue expanding the global presence of our innovative natural gas liquefaction, compression, and regasification products and solutions, particularly in the US where we see attractive growth opportunities.”
John Lindsay, H&P’s President and CEO, commented: “We are pleased to be a cornerstone investor in Galileo, a world leader in innovative natural gas technologies. As the global demand for energy increases, we believe the services and technologies provided by Galileo will gain importance as the world continues to seek lower emissions as well as reliable, low-cost sources of energy.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/05052022/hp-make-cornerstone-investment-into-galileo-technologies/