Arbor Renewable Gas closed an underlying capital commitment from EnCap Investments, a provider of equity capital to the independent sector of the U.S. energy industry, and from Mercuria Energy Company, a global energy and commodity trading organization.
SunGas Renewables, a subsidiary of GTI International, entered into an exclusive joint development agreement with Arbor Renewable Gas to provide its gasification systems to Arbor Gas projects. Haldor Topsoe, a global provider of carbon emissions reduction technologies, licensed its proprietary process and technology for methanol and gasoline synthesis.
Headquartered in Houston, Arbor Renewable Gas is developing renewable gasoline and green hydrogen projects to accelerate the U.S. transition to low carbon fuels. The company’s strategy is to design, build, own and operate facilities that efficiently convert woody biomass into low carbon intensity renewable gasoline and green hydrogen.
“Our commitment to the Arbor Gas team is continuing EnCap’s tradition of investing in the right management teams to take advantage of a growing opportunity in the energy space. We believe the platform is well-positioned to play a critical role in the production of cost-effective, low carbon intensity fuels at scale and concurrently deliver compelling returns to our limited partners,” Kyle Kafka, a partner at EnCap Investments, said.
“The Arbor Gas team has an extensive and proven track record developing, constructing and operating large scale alternative energy projects. We believe this is a unique opportunity to supply renewable gasoline and associated low carbon fuels to strategic markets,” Kellie Metcalf, managing partner at EnCap Investments, said. “Arbor Gas has a scalable business that can deliver clean fuels to multiple markets, aiding the transition to a low carbon energy economy.”
“Mercuria is pleased to have the opportunity to participate alongside EnCap in backing the excellent management team of Arbor Gas for its development of a high-value, low-carbon transportation fuel infrastructure portfolio. The Arbor Gas investment furthers Mercuria’s commitment to the development of innovative projects with leading technology partners in the global transition towards sustainable energy production,” Brian A. Falik, CIO at Mercuria, said.
“The SunGas and Arbor Gas management teams have deep experience deploying technology around the world,” Robert Rigdon, CEO of SunGas, said. “Our agreement with Arbor Gas provides exclusive access to our gasification technology system for production of renewable gasoline in Texas and Louisiana. We believe Arbor Gas has the right team, financing and commercial approach to lead in the decarbonization of the transportation fuels marketplace.”
“We are proud that Arbor Gas has chosen Haldor Topsoe technology in this truly innovative project to decarbonize transportation fuels,” Amy Hebert, CCO of Haldor Topsoe, said. “We are pleased to contribute with our world-leading TIGAS technology, which is a uniquely integrated solution, incorporating the full value chain from syngas to methanol into gasoline.”
“The Arbor Gas team has been financing, building and operating world-scale energy conversion facilities for decades, with a focus on safe and efficient operations,” Timothy E. Vail, CEO of Arbor Renewable Gas, said. “Bringing proven industrial scale development leadership has been the missing component to delivering cost competitive broad scale distribution of low carbon transportation fuels. With the funding of Arbor Gas, we now have the opportunity to use these skills to advance the global fuel decarbonization effort in a meaningful way.”
