Insights

Infinium Announces Series C Investment and Acquisition of Greyrock Technology

DETAILS

- Infinium has announced the acquisition of Greyrock Technology and completion of a Series C Preferred Stock fundraise led by Brookfield Asset Management. - New investors include Japan Hydrogen Fund, Development Bank of Japan, JOGMEC, Mitsubishi Corporation, University of Michigan, and RockCreek. - This funding will enhance the Infinium project pipeline and expand offerings in advanced energy solutions. - Infinium is the first provider of ultra-low carbon eFuels, producing and shipping them from North America through Project Pathfinder. - eFuels are synthetic alternatives to traditional fossil-based fuels, designed to reduce greenhouse gas emissions by over 90%. - Major clients include Amazon, American Airlines, Borealis, and the airline consortium IAG. - CEO Robert Schuetzle emphasized that Infinium eFuels allow customers to use existing infrastructure while reducing emissions. - The acquisition of Greyrock Technology adds over 250 patents and proprietary catalysts to Infinium's portfolio. - Infinium specializes in gas conversion solutions and the development of eFuels projects. - The company's technology focuses on monetizing flare gas and renewable natural gas, catering to the evolving energy industry. - Infinium has established itself as a leader in power-to-liquid clean eFuels and modular gas conversion technology.

COMPANIES

Infinium, Greyrock Technology, Brookfield Asset Management, Japan Hydrogen Fund, Development Bank of Japan, Japan Organization for Metals & Energy Security, Mitsubishi Corporation, University of Michigan, RockCreek, Amazon, AP Ventures, Mitsubishi Heavy Industries, Neuman & Esser, SK, NextEra Energy Resources, American Airlines, Borealis, IAG.

TAGS

Low carbon fuels

AEP Secures Minority Equity Interest Investment in Ohio and Indiana & Michigan Transmission Companies

DETAILS

- A 50/50 strategic partnership between KKR and PSP Investments agrees to acquire 19.9% non-controlling equity interest in two AEP Transcos for $2.82 billion. - The transaction provides highly efficient financing to support AEP's five-year $54 billion capital investment plan, enhance reliability for customers and strengthen the balance sheet. - The equity interest represents approximately 5% of AEP's total transmission rate base. - The transaction allows AEP to efficiently finance a growing segment of its business in the Midwest and enhance its ability to serve growing customer demand and provide reliable service. - Proceeds will support AEP's capital growth plan, offsetting a significant amount of AEP's $5.35 billion equity financing needs through 2029. - The transaction will be immediately accretive to AEP's earnings and credit profile upon closing. - Executing on AEP's capital plan is essential to meet growing energy demand and increase reliability for customers. - Areas such as Ohio and Indiana are experiencing growth that has not been seen for decades. - This transaction allows AEP to address a portion of its capital needs efficiently and at an attractive valuation, benefiting customers and supporting economic development. - AEP maintains a controlling interest in valuable transmission assets, supporting growth and modernization initiatives. - Customers and employees will not experience changes as a result of this transaction. - Increased economic development opportunities are expected for states and customers due to investment in the transmission system. - The transaction requires approval from the Federal Energy Regulatory Commission and clearance from the Committee on Foreign Investment in the United States. - The transaction is expected to close in the second half of 2025. - J.P. Morgan Securities LLC is the exclusive financial advisor to AEP. - Morgan Lewis & Bockius LLP is the legal counsel to AEP. - AEP is committed to improving customers' lives with reliable and affordable power and is investing $54 billion from 2025 through 2029 to enhance service. - AEP operates the largest electric transmission system in the nation with nearly 16,000 employees. - AEP is one of the largest electricity producers in the nation with approximately 29,000 megawatts of diverse generating capacity.

COMPANIES

AEP, KKR, PSP Investments, J.P. Morgan Securities LLC, Morgan Lewis & Bockius LLP, AEP Ohio, AEP Texas, Appalachian Power, Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, Southwestern Electric Power Company, AEP Energy

TAGS

fundraising

ESTUARY POWER CLOSES FINANCING OF ESCAPE SOLAR AND STORAGE PROJECT

DETAILS

- Estuary Power closed a $340 million financing package for the Escape Solar and Storage project in Lincoln County, Nevada, in December 2024. - The project includes 185 megawatts of solar photovoltaic capacity and 400 megawatt-hours of battery energy storage capacity. - Escape will provide power to four key Nevada customers under long-term agreements. - Constructing the solar array is Bechtel Infrastructure and Power Corporation, while Dashiell Corporation is building the substation and transmission upgrades. - Tesla, Inc. is supplying and installing the battery energy storage system, and JinkoSolar is providing TOPCon photovoltaic modules. - Escape is the first utility-scale solar project in Lincoln County, Nevada. - The project is expected to generate nearly $80 million in tax revenue for Lincoln County over its lifespan. - Escape will interconnect to Lincoln County Power District's Mesa substation and transmit power through the local power districts. - Estuary Power, based in Reno, develops large-scale energy projects in the western United States and is a majority woman-owned business. - The financial backing comes from Ullico Infrastructure Fund, which focuses on U.S. infrastructure development, with investments from union pension funds. - Construction is being carried out by members of several local unions working under Estuary's Responsible Contractor Policy. - Ullico Inc.'s President and CEO recently expressed pride in partnering with Estuary Power on the project. - Jill Daniel, CEO of Estuary Power, expressed gratitude for the trust placed in them by customers to meet sustainability goals. - Bechtel's Operations Manager emphasized their commitment to delivering clean power through effective collaboration. - The project's financing involves commitments and loans from several financial institutions, including Morgan Stanley and First Citizens Bank. - Estuary Power received legal advice from multiple law firms throughout the financing process.

COMPANIES

Estuary Power, MGM Resorts International, Overton Power District, Caesars Entertainment, Wynn Las Vegas, Bechtel Infrastructure and Power Corporation, Dashiell Corporation, Tesla, Inc., JinkoSolar, Ullico Infrastructure Fund, Morgan Stanley Renewables Inc., First Citizens Bank & Trust Company, Norddeutsche Landesbank Girozentrale, National Bank of Canada, Denham Capital, CRC-IB, Norton Rose Fulbright LLC, Morgan, Lewis & Bockius, Willkie Farr & Gallagher, Mayer Brown

TAGS

Solar

GFL Environmental Inc. Announces Agreement to Sell Environmental Services Business Valued at $8.0 Billion

DETAILS

- GFL Environmental Inc. announced a definitive agreement to sell its Environmental Services business for an enterprise value of $8.0 billion. - The sale's proceeds will be used to repay up to $3.75 billion of debt and fund up to $2.25 billion in share repurchases. - The transaction enables GFL to roll $1.7 billion of equity in a tax-efficient manner, facilitating significant future value accretion. - The pro forma net leverage is expected to be 3.0x, enhancing financial flexibility and speeding up the path to an investment grade credit rating. - This transaction will reduce annual cash interest expenses by around $200 million, greatly improving adjusted free cash flow conversion. - GFL will retain a 44% equity interest in the Environmental Services business, while Apollo and BC Partners will each hold a 28% equity interest. - The expected cash proceeds from the transaction are approximately $6.2 billion after accounting for retained equity and taxes. - GFL's CEO Patrick Dovigi emphasized that the sale price significantly exceeded initial expectations, indicating the quality of the business. - The agreement allows GFL to maintain synergies between its Environmental Services and Solid Waste businesses. - The transaction is anticipated to close in the first quarter of 2025, subject to customary closing conditions. - GFL's board of directors approved the transaction following a recommendation from a special committee consisting of independent directors. - The company will host a conference call to discuss the transaction on January 7, 2025. - GFL seeks to use its deleveraged balance sheet to invest in organic growth, acquisitions in solid waste, and to enhance returns to shareholders. - Apollo and BC Partners expressed excitement about the growth potential in the Environmental Services space, particularly in U.S. market expansion. - Canaccord Genuity Corp. provided a fairness opinion to the special committee regarding the transaction's financial merits. - GFL intends to provide detailed financial impact insights during its 2024 full-year results report in February.

COMPANIES

GFL Environmental Inc., Apollo, BC Partners, Canaccord Genuity Corp., Brown, Gibbons, Lang & Company Securities, Inc., J.P. Morgan Securities LLC, Latham & Watkins LLP, Stikeman Elliott LLP, Sidley Austin LLP, Kirkland & Ellis LLP, Osler, Hoskin & Harcourt LLP

TAGS

ESG

The Golden Opportunity for American AI

DETAILS

- The United States has a significant opportunity to enhance its economic competitiveness through technology, particularly artificial intelligence. - Artificial intelligence is viewed as the electricity of the modern era and can lay the groundwork for future economic success. - Microsoft proposes a three-part vision for American technology success: advancing AI technology and infrastructure, championing skilling programs for AI adoption, and focusing on exporting American AI. - There is a necessity for collaboration among government leaders, the private sector, educational institutions, and non-profits to achieve this vision. - The U.S. has historically leveraged technology for economic growth, evidenced by the impact of multiple industrial revolutions. - Artificial intelligence is positioned to become a general-purpose technology that drives innovation and productivity across all sectors of the economy. - The U.S. technology sector excels in AI due to substantial private investment and innovation from diverse companies, with Microsoft partnering with OpenAI and other firms. - Microsoft plans to invest approximately $80 billion in AI infrastructure, primarily in the U.S., demonstrating confidence in the American economy. - Success in AI innovation relies on a competitive ecosystem and partnerships that include various stakeholders such as construction firms and software developers. - Sustained support for basic research, primarily from universities and government agencies, is crucial for ongoing technological innovation. - The U.S. excels in translating research into product development, thanks to its investment strategies that blend public and private funding. - Strengthening foundational research and development could further enhance America's lead in AI. - AI skilling initiatives are essential for preparing workers for the evolving job landscape shaped by AI technologies. - Effective skilling programs can mitigate job displacement caused by AI and foster new economic opportunities. - The development of AI fluency among Americans can empower individuals to harness AI in their careers effectively. - Microsoft aims to train 2.5 million American students and workers in AI skills within the next year, promoting accessible education across the U.S. - Community colleges play a critical role in workforce development and are partnering with Microsoft for AI curricula aligned with industry needs. - AI exports are vital for maintaining U.S. technological leadership and competitiveness on the global stage, particularly against China. - A strong strategy for promoting American AI internationally is necessary to counteract China's advancements in AI technology and infrastructure. - The U.S. has superior technology in AI and is committed to responsible AI use that emphasizes cybersecurity and privacy. - American private sector investments in AI infrastructure globally represent a competitive advantage that cannot be easily matched by Chinese subsidies. - The U.S. government should facilitate the expansion of American AI without imposing excessive regulations that could hinder private sector growth. - Optimism prevails regarding the potential of American AI to invigorate the economy through robust innovation and adoption of new technologies. - A cohesive effort involving private, educational, and governmental sectors is necessary to capitalize on the opportunities presented by AI.

COMPANIES

Microsoft, OpenAI, Anthropic, xAI, G42, Blackrock, Google, Amazon

TAGS

ESG

AEP Names Seasoned Energy Executive Trevor Mihalik Executive Vice President & Chief Financial Officer

DETAILS

- American Electric Power has appointed Trevor I. Mihalik as executive vice president and chief financial officer effective January 20. - Mihalik will succeed Chuck Zebula, who will transition to a senior advisor role before retiring in March. - Mihalik's past roles include group president, CFO, controller, and chief accounting officer at Sempra. - He will report to Bill Fehrman, AEP president and chief executive officer. - Mihalik's responsibilities will encompass AEP's accounting and tax, treasury and risk, corporate planning and budgeting, investor relations, procurement, supply chain, strategy, and corporate regulatory functions. - Bill Fehrman highlighted Mihalik's diverse background and energetic leadership as critical to achieving AEP's strategic goals and improving operating performance. - Mihalik expressed gratitude for joining AEP and emphasized commitment to creating value for stakeholders. - Chuck Zebula's leadership and contributions over 25 years at AEP will be missed, and he will aid in the transition until his retirement. - Mihalik has over 34 years of experience in the energy industry, with significant expertise in finance, enterprise risk, and business operations. - His previous position at Sempra involved oversight of the San Diego Gas and Electric and Southern California Gas Company subsidiaries. - Mihalik has also held leadership roles in finance at Iberdrola Renewables Holdings, Chevron Natural Gas, and Bridgeline Holdings. - He began his career with PricewaterhouseCoopers in their assurance business. - Mihalik chairs the finance committee for the WD-40 Company board of directors. - He holds a bachelor's degree in accounting from Creighton University and an MBA from Rice University. - Mihalik is a certified public accountant in Texas. - AEP plans to invest $54 billion from 2025 to 2029 to enhance customer service and meet growing energy needs. - AEP serves 5.6 million customers across 11 states and operates the largest electric transmission system in the nation. - AEP is also one of the largest electricity producers in the U.S. with approximately 29,000 megawatts of diverse generating capacity. - The company's focus is on safety, operational excellence, and community engagement.

COMPANIES

American Electric Power, Sempra, San Diego Gas and Electric, Southern California Gas Company, Iberdrola Renewables Holdings, Chevron Natural Gas, Bridgeline Holdings, Targa Resources, WD-40 Company, AEP Ohio, AEP Texas, Appalachian Power, Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, Southwestern Electric Power Company, AEP Energy

TAGS

Power

CRC Approves California’s First Carbon Capture and Storage Project

DETAILS

- California Resources Corporation and its carbon management business, Carbon TerraVault, announced the approval of California's first carbon capture and storage project at the Elk Hills cryogenic gas plant in Kern County. - The project aims to capture and store up to 100 thousand metric tons of CO2 annually. - Francisco Leon, CRC’s President and CEO, emphasized the project’s role in delivering carbon management solutions and reducing emissions. - The approval highlights California's pathway to combat climate change and the necessity of capturing carbon to meet carbon neutrality goals. - The project includes the use of existing fossil fuel infrastructure for carbon sequestration and is expected to create jobs in the emerging sector. - CRC received final Class VI well permits from the EPA for underground injection of CO2 into the 26R reservoir in Kern County. - The 26R reservoir is part of a joint venture between Carbon TerraVault and Brookfield, with an expected injection rate of 1.46 million metric tons of CO2 per year. - The storage site's total estimated capacity is up to 38 million metric tons. - The first injection operations are expected to commence in late 2025. - CRC is projected to qualify for $85 per metric ton in 45Q tax credits and could generate additional credits through California’s Low Carbon Fuel Standard. - The proximity of the project to CRC’s 26R reservoir will minimize transportation costs for sequestration. - The carbon capture project is projected to generate EBITDA of $50 to $60 per metric ton in fees consistent with economic expectations for storage-only projects. - The estimated capital investment for the capture project is between $14 and $18 million. - The project is expected to lower greenhouse gas emissions from the Elk Hills Power Plant by up to 7%. - CRC’s internal rate of return from the project is anticipated to be within the high end of the previously disclosed range of 10% to 30%. - Carbon TerraVault is focused on developing services to capture, transport, and permanently store CO2 from industrial sources. - The Carbon TerraVault Joint Venture aims to develop infrastructure and storage assets for carbon capture and storage in California. - California Resources Corporation is committed to energy transition while maximizing the value of its mineral ownership and energy expertise for decarbonization.

COMPANIES

California Resources Corporation, Carbon TerraVault, Brookfield

TAGS

Carbon Capture Utilization and Storage

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