Are satellite company models redefining how oil majors invest in green energy growth?

Why are energy giants using satellite subsidiaries to accelerate their green transition strategies?

In a year marked by aggressive decarbonization commitments and capital realignments, energy majors such as Eni, Shell, TotalEnergies, Repsol, and Equinor are increasingly leaning on a new strategic structure: the satellite company model. By forming distinct entities focused on renewable generation, electric mobility, and energy services, these firms aim to unlock value, attract outside capital, and de-risk their net zero ambitions.

The model allows traditional oil and gas giants to segregate high-growth, low-emission businesses into ring-fenced platforms—often while retaining majority control. Most recently, Italian energy group Eni S.p.A. struck a €2 billion deal with Ares Management Corporation, selling a 20 percent stake in its green subsidiary Plenitude. This follows a 10 percent stake sale to Energy Infrastructure Partners and is part of a broader “satellite strategy” that Eni has implemented to drive Scope 3 emissions reductions and capital discipline.

Industry analysts view this move as emblematic of a larger shift in how oil majors are structuring their low-carbon portfolios—not as bolt-ons to legacy business, but as semi-autonomous, investor-backed growth companies.

What does the Plenitude model tell us about the satellite strategy’s role in capital allocation?

Plenitude S.p.A. Società Benefit serves as Eni’s integrated clean energy platform, with operations across more than 15 countries. The firm combines over 4 gigawatts (GW) of renewable generation, 10 million energy retail customers, and 21,500 electric vehicle charging points under one brand. It is targeting 10 GW of renewable capacity and more than 11 million customers by 2028.

The entity operates independently with its own CEO and governance structure, but remains majority-owned by Eni. By inviting Ares Management to take a minority stake, Eni effectively monetized a portion of Plenitude without relinquishing strategic control or listing the firm publicly. Analysts believe such moves allow Eni to recycle capital into other decarbonization investments—including carbon capture, biofuels, and hydrogen—without overburdening its balance sheet.

Francesco Gattei, Chief Transition and Financial Officer at Eni, stated that the deal demonstrates “the strong appeal of Plenitude’s business model” and aligns with the company’s goals to “continuously create value and contribute towards our net zero Scope 3 emissions reduction targets.”

Institutional sentiment toward the transaction has been broadly positive, highlighting investor confidence in hybrid utility-retail-mobility models that can deliver both growth and ESG compliance.

How are Shell, TotalEnergies, Repsol, and Equinor using similar satellite approaches?

Other oil majors are experimenting with parallel structures. Shell plc has scaled up its “Shell New Energies” division, which oversees its EV charging brand Shell Recharge, power trading business, and renewables portfolio. Although not a formal legal spinoff, Shell New Energies operates with a dedicated management framework and is seen as a candidate for partial carve-outs or joint ventures in the near future.

TotalEnergies SE launched “OneTech,” an internal consolidation of all low-carbon and digital energy projects. While still housed within the corporate structure, OneTech is designed to foster tech-enabled scaling of renewables, smart grids, and energy efficiency platforms. TotalEnergies has also signaled interest in bringing external capital into select business units as it prepares for long-term decarbonization.

Repsol SA, meanwhile, spun out its electric mobility division into Waylet, a digital-first energy and payment ecosystem. Repsol raised €905 million by selling a 25 percent stake in its renewable subsidiary to Crédit Agricole and Energy Infrastructure Partners in 2022—preceding Eni’s path and indicating institutional interest in partial carve-outs.

Equinor ASA, although more conservative, is exploring new entities for offshore wind and carbon capture storage (CCS) projects, especially in Northern Europe. These are not yet formal satellite companies but could evolve into dedicated platforms to attract project-specific financing.

What are the capital strategy benefits of the satellite model in energy transition investing?

The satellite model offers three major financial advantages: capital efficiency, valuation uplift, and risk insulation. By separating clean energy operations from upstream oil and gas businesses, oil majors can improve visibility into growth metrics, making these units more attractive to ESG-focused investors.

Valuation arbitrage plays a central role. While integrated oil majors often trade at low earnings multiples due to fossil fuel exposure, green subsidiaries are commanding significantly higher valuations—typically 15–20x EBITDA—given their growth outlook and regulatory alignment.

Moreover, partial stake sales (as seen in the Plenitude–Ares deal) provide capital without dilution at the parent level, avoiding the market risks and reporting burdens of an IPO. These transactions also offer investors governance rights and future upside, aligning interests while maintaining strategic autonomy.

From a risk perspective, satellite structures allow oil majors to protect legacy assets from potential stranded costs or policy shocks while incubating new technologies and customer models under a lighter regulatory and operational footprint.

How are institutional investors responding to these satellite platforms compared to full green spinoffs?

Investor sentiment appears to favor the flexibility of partial divestments and strategic equity placements over fully spun-off green entities. For private equity firms like Ares Management, the Plenitude model offers a de-risked way to gain exposure to energy transition infrastructure without assuming the full complexities of utility-scale operations.

Analysts suggest that minority stakes in focused, fast-growing subsidiaries often carry less integration risk than full acquisitions and offer better visibility into returns. Investors benefit from ring-fenced governance, ESG disclosure frameworks, and performance-based equity rights—features that aren’t always available when buying into diversified energy conglomerates.

Meanwhile, public markets have shown volatility when it comes to standalone renewable energy firms, especially amid inflation and rate cycles that challenge long-duration infrastructure valuations. The satellite model, by contrast, blends stability with upside and offers oil majors a buffer against commodity downturns.

Will the satellite model become the dominant structure for energy transition businesses?

While no single model will dominate globally, the satellite approach is gaining traction in Europe and parts of North America where regulators, capital markets, and energy firms are aligned in accelerating the transition. It is particularly well suited to integrated players who want to scale clean energy without losing control of key customer and infrastructure assets.

As ESG frameworks tighten and investors demand more transparency on capital flows, satellite companies offer a middle path—balancing investor access with strategic coordination. The success of Plenitude, Shell Recharge, Waylet, and OneTech will likely influence whether other oil majors follow suit or pursue alternative models such as M&A, joint ventures, or green IPOs.

What is the future outlook for satellite companies and their role in net zero strategies?

The next 24 months could see increased deal activity involving satellite energy firms, including more minority stake sales, structured debt placements, or even full IPOs in favorable market conditions. For Eni’s Plenitude, speculation around a public listing has resurfaced following the Ares deal, though no plans have been confirmed. Analysts suggest 2026 could be a viable timeline if macroeconomic conditions stabilize.

As clean energy investment needs soar—exceeding $4 trillion annually by 2030, according to the International Energy Agency—satellite companies may emerge as capital-efficient vehicles to mobilize institutional funding without fracturing core balance sheets.

For oil majors, they represent an opportunity not just to de-risk, but to reframe their public identities—from fossil incumbents to energy transition orchestrators. And for investors, they offer rare access to utility-like growth stories with premium ESG credentials and embedded energy infrastructure scale.