Resource logo with tagline

Partners Group signs CO2 removal agreement with Climeworks

Under the agreement, Climeworks will remove more than 7,000 metric tons of CO2 from the atmosphere on Partners Group's behalf.

Partners Group, a global private markets firm, has signed a 13-year agreement with Climeworks, a Swiss provider of high-quality carbon dioxide removal via direct air capture (DAC).

Under the agreement, Climeworks will remove more than 7,000 metric tons of carbon dioxide (CO2) from the atmosphere on Partners Group’s behalf, which will be permanently stored underground, according to a news release.

The DAC agreement with Climeworks is a significant step for Partners Group, which announced in 2022 that it would develop a decarbonization program to achieve net zero corporate greenhouse gas (“GHG”) emissions by 2030. While a priority of the program will be to reduce the firm’s overall emissions, removing residual emissions via capture and storage of atmospheric CO2 will also play a role in achieving the net zero goal. The agreement with Climeworks is Partners Group’s first adoption of a technology-based solution to address GHG emissions and sits alongside the firm’s growing portfolio of nature-based solutions, such as reforestation, which also contribute to enhancing biodiversity.

Partners Group co-led a CHF 600 million fundraising round in Climeworks in 2022 on behalf of its clients. As it does with all portfolio companies, the firm is currently working with the Climeworks management team and other investors with a focus on addressing the massive scale up the industry requires.

David Layton, Partner and Chief Executive Officer, Partners Group, comments: “The agreement with Climeworks reflects Partners Group’s focus on sustainability and its commitment to achieving positive stakeholder impact over the long term. Our aim is to be a sustainability leader in private markets by driving forward positive change at the companies under our stewardship, and also by playing a leading corporate role in the transition to a net zero global economy.”

Christoph Gebald, co-founder and co-CEO, Climeworks, says: “We are proud to welcome our investor Partners Group as a client and to support their journey toward net zero. High-quality carbon removal must be scaled to gigaton level by 2050, and multi-year agreements like this one are a crucial lever. Partners Group’s commitment to high-quality carbon removals underlines the leading role of the financial services industry in this scale-up. As one of the global leaders in private markets, Partners Group sends a strong signal, which will hopefully inspire more companies to take action on carbon removal.”

Climeworks’ DAC technology actively removes CO2 from the atmosphere in a scalable manner, which can then be permanently stored underground. In Iceland, where Climeworks operates the world’s largest DAC facility and storage installation in operation, called Orca, its air-captured CO2 is mixed with water and pumped underground, where, through the Carbfix method, it reacts with basaltic rock formations and mineralizes. Through this accelerated natural process, the CO2 turns into stone and is permanently removed from the air for thousands of years. This full DAC and storage process is third-party verified by an independent quality and assurance leader. In 2022, Climeworks broke ground on a second, larger plant in the same country, called Mammoth, which represents a demonstratable step in the Company’s ambitious scale-up plan.

Unlock this article

The content you are trying to view is exclusive to our subscribers.
To unlock this article:

You might also like...

BayoTech appoints CFO

BayoTech has appointed Brian Kellar as chief financial officer.

BayoTech, a provider of hydrogen production and transportation solutions, has appointed Brian Kellar as its new chief financial officer.

Before joining BayoTech, Brian Kellar served as CFO at Northwind Midstream Partners, where he played a crucial role in the company’s formation and strategic financial planning, according to a news release. His leadership at EVX Midstream saw the company’s growth from a startup to the dominant player in the South Texas saltwater disposal landscape.

In his role as CFO, Mr. Kellar will direct BayoTech’s financial strategy and operations, focusing on enhancing financial performance and aligning closely with the company’s strategic goals. His leadership is pivotal in fortifying BayoTech’s financial foundation and supporting its mission to establish a network of localized hydrogen production hubs throughout the United States.

Kellar steps into his new role following Jeff Wood. BayoTech expresses its gratitude to Mr. Wood for his contributions and wishes him the best in his future endeavors.

Read More »

SAF developer closes on development capital investments

The development capital milestone will allow the company to reach FID on a $4.2bn SAF facility in Louisiana.

DG Fuels, a SAF developer, has closed investment transactions with two Japanese companies, according to a news release.

With the investments in DGF made by aviner & co., inc., Chishima Real Estate Co., Ltd. (Chishima) and an undisclosed investor, DGF has now exceeded its minimum investment target as part of its final round of parent level development capital needed to fund the remaining expected expenses required to reach FID, including the ongoing FEL 3 and related expenses.

ReSource previously reported that DGF was working with Stephens and Guggenheim as investment bankers to advance a capital raise.

The relatively modest balance of the maximum $30m capital raise is expected to fund in the next few months. DGF currently expects that FID on its proposed $4.2bn, 180 million gallon per year SAF facility in Louisiana to occur in early 2024.

The Louisiana SAF facility will be the template for multiple other such facilities to be built across North America, Europe and Asia.

Yoshiyuki Shibakawa, representative director of Chishima said, “We believe the SAF to be produced by DG Fuels makes a significant contribution to reducing CO2 emissions in the aviation industry. Through its partnership with DG Fuels, we will contribute to the decarbonization of the aviation industry.”

Aviner, which is active in aircraft management and renewables, has worked closely with DGF as its strategic partner and representative in Japan and broader Asia to market DGF’s SAF product to off-takers in the Asia Pacific region as well as jointly studying potential production of SAF by DGF in the region.

“SAF sits right in between aviation and energy which are the prime focus of ours. We have strong belief in the DGF team and are excited to be part of this project. SAF produced by DGF’s high carbon conversion efficiency technology uses woody biomass feedstock which will not face limitation in feedstock supply and we expect DGF’s technology and know-how can be replicated in various locations around the world.” said Hideyuki Yamanaka, CEO of aviner.

“The DG Fuels facility will produce 180 million gallons of zero carbon emissions SAF,” said Michael C. Darcy, CEO of DG Fuels, The facility itself has a very minor atmospheric emissions and zero water discharge to the local environment and will bring 600 new permanent operating jobs and up to 2,100 construction jobs over three years to the local community.”

“We have worked diligently with our investors in implementing this long-term relationship to mutually focus on decarbonizing the aviation sector in a responsible manner,” said Christopher J. Chaput, president and CFO of DG Fuels. “The DG Fuels SAF product relies on no feedstock that would negatively impact the food supply and our highly efficient production process allows us to profitably sell SAF to airlines at attractive prices.”

Read More »

Quinbrook Infrastructure moves into renewable fuels

Quinbrook has acquired renewable fuels and biogas company PurposeEnergy.

Quinbrook Infrastructure Partners, a specialist investment manager focused exclusively on the infrastructure needed to drive the energy transition, has acquired PurposeEnergy, according to a news release.

An established US-based renewable fuels and biogas specialist, PurposeEnergy is focused on waste solutions for the food and beverage industries. Over the last 15 years, PurposeEnergy has developed, owned and operated multiple projects that convert organic waste streams to biogas for use in industrial processes, conversion to renewable electricity, or refinement to Renewable Natural Gas (“RNG”).

“Quinbrook is really excited to be moving into such a high growth and important sector that desperately needs more sustainable solutions that convert organic food waste into renewable power and biogas. The demand for renewable fuels is exploding and in PurposeEnergy we have found a highly capable technical and operational team that have been in business over a decade, delivering impactful solutions for customers and the environment,” said Quinbrook’s Managing Partner and Co-Founder David Scaysbrook. “Now is the right time for us to scale this business to realise its full potential. PurposeEnergy is a great example of the Quinbrook model for value-add investing.”

Headquartered in New Hampshire, PurposeEnergy utilizes proven technologies including proprietary methods developed and patented by the company to convert organic waste streams to high value biogas and RNG that is sold to customers under long term contracts. The Company has established an impressive track record developing, designing, constructing and operating projects that have delivered high impact solutions for the food and beverage industry. In many cases, this has enabled customers to materially increase production and improve the economics of their core business.

PurposeEnergy has developed, designed and built seven projects that support the ESG, business and decarbonization objectives of some of the largest food and beverage companies in the world. The Company currently has one project in construction, two starting construction later this year and additional growth projected from existing and new customers. While PurposeEnergy has largely served the food and beverage industries, the Company also works with dairies and depacking operations to convert organic waste streams to energy.

“For more than a decade, PurposeEnergy has demonstrated technical and operational excellence in treating process wastewater and organic residuals for industrial food and beverage producers. The investment by Quinbrook will greatly expand our ability to identify, finance, build and operate new projects, helping our customers achieve their ESG goals while conserving capital to invest in their core businesses,” commented PruposeEnergy Founder & CEO Eric Fitch.

Quinbrook’s acquisition of the Company will deliver the capital resources, enhanced commitment to sustainability and ESG driven impact, and additional strategic relationships to support rapid scale up to meet the growing demand for renewable fuels. The food industry is an attractive sector for investment which is set for enormous growth given more stringent environmental regulations, the critical need for more sustainable solutions for growing food waste and the acute demand for renewable fuels across the board.

Commenting on an example of how PurposeEnergy delivers solutions for its customer partners, Agri-Mark Family Dairy Farm’s Vice President of Strategic Engagement & Sustainability, Jed Davis remarked, “The construction of the Middlebury Resource Recovery Center (MRRC) adjacent to Agri-Mark/Cabot’s flagship cheddar cheese and whey protein plant represents a critical step toward achieving our operational and sustainability goals. PurposeEnergy’s project allows us to send byproducts of cheesemaking to the digester via pipeline, creating renewable energy. This direct diversion eliminates the trucking of over 250 loads per month, reducing greenhouse gas emissions by more than 2,000 tons a year. Agri-Mark’s family farm owners are committed to protecting the local environment and maintaining a resilient dairy industry for future generations. By repurposing process organics into renewable electricity for Vermont residents, Cabot is providing award-winning dairy products while supporting commitments to our local communities.”

Read More »
exclusive

It’s an electrolyzer – but for CO2

A New Jersey-based start-up is seeking to commercialize an electrocatalytic technology that transforms CO2 into a monomer for the plastics industry.

RenewCO2 is developing and seeking to commercialize a modular technology that converts waste CO2 into a usable product.

The New Jersey-based company is advancing a pilot project at an Ace Ethanol plant in Wisconsin that will take CO2 and convert it to monoethylene glycol, which can be used by the plastics industry.

The project was recently selected by the US DOE to receive a $500,000 grant. It seeks to demonstrate the technology’s ability to reduce the ethanol plant’s carbon footprint and produce a carbon-negative chemical.

In an interview, RenewCO2 co-founders Anders Laursen and Karin Calvinho said their technology, which was developed at Rutgers University, is geared toward carbon emitters who can not easily pipe away their CO2 and who may have use for the resulting product.


“It’s a matter of economics,” said Calvinho, who serves as the company’s CTO. Using the RenewCO2 technology, the ethanol plant or other user is able to keep 45Q tax incentives for capturing CO2 while also creating a product that generates an additional revenue stream.

Additionally, the modular design of the technology prevents emitters from having to build expensive pipeline infrastructure for CO2, she added. “We want to help to facilitate the use of the CO2 on site,” she said.

One of the goals of the project is to measure the carbon intensity of these technologies in combination, which ultimately depends on the electricity source for the electrochemical process, similar to an electrolyzer, Laursen, who is the CEO, said.

“The main constraint from a location point of view is the availability of reliable and affordable green power,” Laursen added.

Creating a market

The principal target market for RenewCO2’s technology is existing producers of monoethylene glycol (MEG), which is used to make recycled plastics, as well as ethanol producers and other emitters with purified CO2 streams.

Producers of polyethylene terephthalate (PET) – one of the most recycled plastics globally – are also potential customers since they use MEG in their production process and have CO2 sources on site.

“Right now, MEG produced in the US is, for the most part, not polymerized into PET – it’s shipped overseas for making PET plastics used in textiles, and then made into fibers or shipped further,” Laursen said. “So if you can shorten that transport chain, you can reduce the CO2 emissions associated with the final product.”

RenewCO2 is looking for partners to help build the modular units, and is evaluating the purchase of existing PEM electrolyzer units that can be reconfigured, or having the units custom manufactured.

“We’re talking to potential manufacturing partners and evaluating whether we should do the manufacturing ourselves,” Calvinho said. And if they choose the latter route, she added, “we will have to build our own facilities, but it’s early to say.”

The company has raised a total of $10m in venture investment and grant funding, including a pre-seed round of over $2m from Energy Transition Ventures, a Houston-based venture capital fund.

While not currently fundraising, Laursen said they are always taking calls to get to know the investors that are interested in the space. He added that the company may need to raise additional capital in 12 to 18 months.

Read More »
exclusive

US hydrogen developer auditioning bankers

A US-based clean fuels developer has large capital needs for unannounced green hydrogen projects in California and Illinois, as well as an ammonia facility in Texas.

A US-based clean fuels developer has large capital needs for unannounced green hydrogen projects in California and Illinois, as well as an ammonia facility in Texas.

Avina Clean Hydrogen has yet to formally engage an investment banker to raise the equity and debt needed for a trio of projects under development in the US, CEO Vishal Shah said in an interview.

The company, which recently announced the formation of a strategic advisory board composed of executives from companies like Cummins, bp and Rolls Royce, will need $600m or more of debt and between $200m and $300m of equity, as previously reported by ReSource. Capital raising talks are focused on the operating company and project level.

Capital raises for Avina’s 700,000 mtpa green ammonia project in the Texas Gulf Coast and a larger operating company raise will launch next month, Shah said.

“The amounts that we are going to need to raise have gone up,” Shah said. “We are working with a number of banks but we’ve not engaged anyone formally.”

Buildout of the Texas project has been accelerated. The company recently announced an agreement with KBR for that project, which is scheduled to come online next year.

Project level capital has been raised for Texas and a green hydrogen project in Southern California, Shah said. An additional green hydrogen project in Illinois is in development as well.

Finding the renewable power

Renewable power needs for these facilities are big, but Shah said the company doesn’t see a shortage of power. Instead, developers are facing interconnection issues and subsequent cost increases.

Hydrogen developers in California are in many cases offering higher prices for renewable energy than other buyers, Shah said. The issue is that credit-worthy investment counterparties are often seen as more attractive offtakers regardless of the higher price offers from aspiring hydrogen producers.

“I would say California is different,” Shah said. “The offtake market is a challenge.”

There are renewables developers with a genuine interest in hydrogen looking at the sector as a long-term play, Shah said. But for some without a strategic interest in hydrogen, a community choice aggregator offering a 15-year offtake is more certain than a hydrogen developer offering a 10-year offtake; higher price can be seen as a trade-off.

“That’s the nature of the beast, right now.”

Regulatory uncertainty

Investors looking into the space are hesitating to deploy capital in some cases because of uncertainty around IRA clarifications, particularly with regards to the PTC qualifications, Vishal said.

“A lot of the customers, lenders, everybody’s waiting to make decisions,” Vishal said. Offtakers also have hesitations. “Nobody wants to sign long-term contracts in an environment where pricing is not clear.”

Shah said investors should look for offtake when investing in projects. Avina has two of three contracts signed for each of its projects.

Read More »

Welcome Back

Get Started

Sign up for a free 15-day trial and get the latest clean fuels news in your inbox.