Principal Investments

Investing in assets and shareholdings across the commodity trading spectrum

RWE Supply & Trading founded Principal Investments in order to develop a profitable portfolio of asset investments and company shareholdings in addition to commodities trading positions. Our extensive expertise on the international energy commodities markets puts us at a huge advantage here. The focus is on the markets, of which we have an in-depth understanding and in which we are physically active, in order to best manage the inherent commodities risks they present. 

  • Investments in primarily commodity-related assets and companies generally amount to up to USD 50 million. 
  • Active contribution of skills and knowledge of commodities trading and technical expertise to expand RWE’s market presence.
  • Targeted investments in projects whose value creation is largely generated by the commodities business and less via a complex financing structure.
  • Regional focus on Europe, North and South America and Asia-Pacific. 

Team

Our team of experienced investment experts headed by Kostas Papamantellos is spread across three RWE sites in the UK and the US. This leads to very effective synergies with RWE’s other core areas of expertise and ensures the broadest possible geographic coverage. 

  • Kostas Papamantellos – Head

    Kostas is Head of Principal Investments for RWE Supply & Trading. Kostas is an investment and commercial executive with 15 years’ experience in the energy industry. Further to a commercial role in the energy related industrial goods sector, Kostas joined The Boston Consulting Group in 2005 where he focused on strategic due diligence cases for major private equity companies. Kostas joined the RWE Group in 2008 to help expand its business internationally along the entire value chain of the company. He joined the RWEST Principal Investments fund in 2011. Kostas holds an MSc and PhD degree in Engineering from the RWTH Aachen University in Germany.

Portfolio

Examples of active investments

  • Investments in oil and gas lease agreements in the Permian Basin (US)

    Ascent Energy is a Denver, Colorado, based oil and gas exploration and production company focused on acquiring and developing oil and gas leases in the Permian Basin of Texas and new Mexico.

Examples of completed investments

  • Lynemouth Power (UK) – acquisition of a coal-fired power plant and conversion to biomass

    RWE purchased the Lynemouth UK coal-fired power plant, in 2012, having developed an opportunity to convert it to biomass. The plant was originally dedicated to supply an aluminum smelter that has been closed, hence was no longer of strategic value for the previous owner, but a value enhancing deal for RWE based on UK market conditions and RWE’s experience of biomass conversion and coal/biomass trading. RWE gained a contract from UK government for the conversion, took it through a State Aid approval by the European Commission, and developed engineering contracts to create a “shovel ready” project, which it then sold to a strategic investor, EPH (Energetický a průmyslový holding), in January 2016.

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RWE Supply & Trading

Principal Investments Team