- Sunya Scoop
- A billion here, a billion there
A billion here, a billion there
PLUS: Clean Energy-Stonepeak, Ara's $3bn raise, Segue-NGP, Sandbrook's $2bn raise, KDT's bet on MetOx, COP28 impact on renewables
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Clean Energy Fuels Corp. secured up to $400 million in financing from Stonepeak for renewable natural gas (RNG) infrastructure expansion.
The financing includes a six-year $300 million senior secured term loan and a two-year delayed draw term loan commitment of an additional $100 million.
The funds will be used to repay existing loans and support the development of new RNG production facilities and expansion of fueling infrastructure for heavy-duty trucks.
Clean Energy currently supplies RNG in the form of compressed natural gas (CNG) and liquified natural gas (LNG) to numerous fleets for decarbonizing large vehicles.
RNG is a biogenic fuel produced from organic waste, reducing GHG emissions in both agriculture and transportation sectors.
The term loan has a 9.5% annual interest rate, with the option to pay up to 75% of the interest in kind during the first two years.
Clean Energy issued warrants to Stonepeak for 10 million shares
Ara Partners closed over $3 billion in new capital commitments.
Their third private equity fund, Ara Fund III, reached $2.8 billion, exceeding its initial $2 billion target.
The fundraising received support from existing and new institutional investors from North America, Europe, and Asia-Pacific.
Fund III focuses on industrial decarbonization, investing in companies in the United States, Canada, and Europe across various sectors to reduce carbon emissions.
Ara Fund II closed in September 2021 at approximately $1.1 billion, surpassing its $650 million target.
Ara Partners currently manages approximately $5.6 billion in assets.
Fund III has already completed four investments, including Vacuumschmelze, Genera, CFP Energy, and CycleØ.
The firm's founders are Charles Cherington and Troy Thacker, and they have a dedicated investment team operating from offices in Houston, Boston, and Dublin.
Sandbrook Capital has raised $2.1 billion for its debut fund, the Sandbrook Climate Infrastructure Fund I, with an initial goal of $1 billion.
The fund, based in Stamford, Conn., focuses on clean-energy investments and has garnered the support of approximately 35 investors.
Sandbrook's investors include PSP Investments and the Investment Management Corporation of Ontario, among others.
The firm, established in 2021, was founded by Kenneth Ryan, Alfredo Marti, Carl Williams, Christopher Hunt, and Germán Cueva, all of whom were previously partners at Riverstone Holdings.
Sandbrook has already invested about one-third of its capital through its inaugural fund, making three deals.
One of its recent acquisitions was German wind-power company NeXtWind in August, with PSP and IMCO also investing in the same business.
Sandbrook has shown interest in the U.S. renewable-energy sector, where asset valuations have become more favorable due to recent market trends and declining competition.
The firm's focus is on clean energy investments in North America and Europe.
Sandbrook's fundraising effort coincides with the broader private-equity landscape, where it has become more challenging to raise capital for infrastructure investments this year.
PSP Investments sees Sandbrook as a strategic partner to expand its investments into related sectors such as energy storage, power transmission, offshore wind, and renewable-energy supply chains.
SR2 supports clean energy and storage projects at any stage with flexible capital.
NGP's commitment to SR2 expands their sustainable real assets investments.
SR1 has 16 investments in solar, storage, EV charging depots, and tax credit monetization.
Segue partners with development firms for on-the-ground expertise.
They made seed-stage investments in EV Realty and Reunion Infrastructure.
SR1's portfolio includes ~100 projects representing 20,000 MW capacity across various regions.
SR1 has experienced liquidity through project sales in ERCOT/TX, Ontario, and TVA.
BNP Paribas launches BNP Paribas Climate Impact Infrastructure Debt fund
The fund is a collaboration between BNP Paribas Asset Management, BNP Paribas Corporate & Institutional Banking, and BNP Paribas Cardif.
It aims to raise EUR 500-750 million from institutional investors.
The fund supports energy transition projects in continental Europe.
Focus areas include renewable energy, clean mobility, and the circular economy.
Three initial investments have been secured for the fund.
The fund benefits from the expertise of BNP Paribas' Low Carbon Transition Group and BNPP AM's track record in sustainable finance.
MetOx International, Inc. is a leading manufacturer of advanced power delivery technology.
They are accelerating the production of their high-temperature superconducting wire (Xeus™) to unlock additive energy generation, efficient energy transmission, and advanced medical devices.
A consortium of investors, led by Koch Disruptive Technologies (KDT) and supported by Safar Partners, Piedmont Capital Investments, DNS Capital, and others, is providing a capital infusion.
This investment will allow MetOx to significantly increase its domestic production capacity of Xeus™ positioning MetOx as the largest HTS manufacturer in North America.
Koch Disruptive Technologies (KDT) is known for its expertise in material manufacturing and investing in transformative technologies.
Xeus™ HTS wire has various applications, including improving power delivery efficiency, high-field magnet applications like nuclear fusion, advanced cancer treatments, and medical imaging.
The financing will enable MetOx to expand its capacity and develop new technology and products.
The COP28 climate deal sets a goal to revolutionize the global energy system, emphasizing a transition from fossil fuels and a massive expansion of renewable energy.
Rather than calling for a fossil-fuel "phaseout," the agreement focuses on ramping up renewables, seeking a tripling of wind, solar, and similar sources by 2030.
This expansion is expected to reduce coal, oil, and gas consumption, lower greenhouse-gas emissions, and mitigate climate change effects.
Achieving this goal will require significant changes, including addressing grid-connection delays, financing challenges, land use disputes, labor shortages, and political opposition.
The commitments made at COP28 are not binding; countries are encouraged to incorporate the aims into their own climate plans.
The target of tripling renewables requires adding approximately 1 terawatt of renewables annually, reaching 11 terawatts of capacity by 2030.
The falling cost of renewable energy and advancements in battery technology are supporting the transition away from fossil fuels.
Global grid infrastructure must be upgraded, and additional investments are needed to achieve countries' climate goals.
Developing countries face challenges in funding new infrastructure, and COP28 did not make significant progress in defining the role of multilateral financial institutions in the transition.
An international carbon market was discussed as a potential source of climate finance, but progress was slow at COP28.
COP28 TLDR: methane emissions reduction and tripling renewable capacity
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