Nexus PMG has closed a $50m growth equity round, led by an affiliate of Greenbacker Capital Management LLC, with participation from the Ontario Power Generation Pension Fund and Liberty Mutual Insurance, according to a news release.
The close of this investment represents a significant milestone as the firm builds upon a decade of experience in the low-carbon waste-to-value sector and will enable Nexus PMG to rapidly expand its services business and project development business lines in North America.
The world of sustainable fuels, biomass and other waste-to-value asset classes is highly complex. As an early mover in the low-carbon infrastructure sector, Nexus PMG’s services business has supported more than 80 unique investors and has advised on over 500 unique infrastructure assets. With the new round of capital, Nexus PMG intends to expand its existing core service offerings including front-end engineering and design, development-as-a-service and operational turnaround. Nexus also leverages its deep knowledge in the space to develop greenfield and brownfield assets across North America, creating low-carbon (or even carbon-negative) products to reduce the emissions of tough-to-abate sectors like chemicals production and aviation.
“Nexus PMG’s strategy of consulting for, and directly developing in, the waste-to-value space is an attractive, high-growth proposition,” said Quinn Pasloske, a Principal at Greenbacker. “The transformation of our waste infrastructure and the production of low-carbon fuels is a critical component of the global energy transition, but the assets are challenging. Nexus PMG is well-equipped to assist clients in navigating those complexities while advancing its independent platforms and assets.”
Today, Nexus PMG serves upwards of 100 investors, developers and corporations that collectively have more than $300 billion of energy transition assets under management and more than $1 trillion of global assets under management. To date, Nexus PMG has supported various stages of development and execution on more than $35 billion worth of low-carbon infrastructure projects across 26 U.S. states, 13 countries and five continents. With a decade of deep knowledge and experience consulting on the design, bid and build side of low-carbon infrastructure, where Nexus PMG works closely with the owners and financiers of these projects, the company’s services business is primed for growth. In the next phase, Nexus PMG will hire additional talent and expand its offerings and client base, while continuing to tailor to industry needs.
“Green molecule infrastructure is rapidly advancing and is a critical component of the energy transition,” said Ryan Bisch, board member of Nexus. “Nexus is at the forefront of building and optimizing this type of infrastructure. The company can develop new assets and revitalize existing ones to produce cost-competitive molecules that can reduce or even eliminate harmful greenhouse gasses.”
Nexus PMG also develops assets through two separate subsidiaries: Nexus W2V, which focuses on converting organic waste streams into renewable natural gas, compost products and biochar; and Pathway Energy, which focuses on the production of ultra-low-carbon intensity sustainable aviation fuel by leveraging carbon sequestration. Both subsidiaries are developing greenfield infrastructure assets and expect to commercialize these assets over the next several years.
“Today, as corporations and investors strive to meet near- and long-term sustainability goals, we find that most have existing portfolio assets with a waste component that can be valorized,” said Ben Hubbard, CEO of Nexus PMG. “Helping corporates in those waste-to-value asset classes is essential to achieve our larger energy transition goals and now, as an institutionally backed firm, we’re looking forward to expanding our team to meet a growing demand for low-carbon infrastructure subject matter expertise.”
