Global drilling contractor Nabors Industries has assembled a significant war chest as it aims to establish a foothold in the energy transition arena.

Nabors will spearhead what it described as a “three-pronged” approach to the energy transition, including decarbonisation solutions and the formation of a venture investment group which has already committed more than $30 million to three geothermal companies.

The company has also raised $276 million from an initial public offering for Nabors Energy Transition Corporation (NETC) that intends to make a significant acquisition in the segment.

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“NETC was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation or similar business combination with one or more businesses or entities. It intends to pursue an initial business combination target in the energy transition space,” Nabors said.

The company said it has already developed proprietary emissions reporting and analytics software, energy storage systems and carbon capture technologies as it works to improve efficiency and reduce emissions.

“Looking ahead, the company expects to extend these technologies beyond drilling to the broader upstream segment. Nabors is also exploring opportunities to extend certain solutions beyond oil and gas to other industries, such as to the hundreds of thousands of engines used today in maritime applications and power generation,” the company said.

Nabors - through its Nabors Energy Transition Ventures business - has already made strategic investments in three geothermal companies – Geo-X Energy, SAGE Geosystems and Quaise, adding that other “initial targets” will include alternative energy sources such as hydrogen, energy storage and carbon capture.

“Our people and technologies have enabled the energy industry to achieve ambitious goals and deliver substantial operational efficiency gains," said Nabors chief executive Anthony Petrello.

"Now, as society faces its most daunting challenges – simultaneously addressing climate change, decarbonizing the economy and accessing responsibly, more affordable, reliable energy than ever before – we’re doing our part and innovating the future of energy."