Arbor Renewable Gas secures capital commitment from EnCap

By Arbor Renewable Gas LLC | August 25, 2021

Arbor Renewable Gas LLC (Arbor Gas) announced on Aug. 17 its underlying capital commitment from EnCap Investments L.P., a leading provider of equity capital to the independent sector of the U.S. energy industry, and from Mercuria Energy Company LLC, a leading global energy and commodity trading organization.

SunGas Renewables, a subsidiary of GTI International, has entered into an exclusive joint development agreement with Arbor Gas to provide its gasification systems to Arbor Gas projects. Haldor Topsoe, a global leader in carbon emissions reduction technologies, licensed its proprietary process and technology for methanol and gasoline synthesis.

Headquartered in Houston, Texas, Arbor Gas is developing state-of-the-art, industrial scale renewable gasoline and green hydrogen projects to accelerate the U.S. transition to low carbon fuels, helping to shape a more diverse and sustainable transportation system. Arbor Gas’ 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,” said Kyle Kafka, EnCap partner.  

“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,” said EnCap Managing Partner Kellie Metcalf. “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,” said Brian A. Falik, Mercuria chief investment officer.

“The SunGas and Arbor Gas management teams have deep experience deploying technology around the world,” said Robert Rigdon, CEO of SunGas. “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,” said Amy Hebert, CCO of Haldor Topsoe. “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,” said Timothy E. Vail, CEO of Arbor Gas. “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.”

The team at Arbor Gas is led by Co-Founders, Chief Executive Officer Timothy E. Vail and John G. Kennedy III, both of whom have a depth of experience in the development, financing, and operation of world-scale facilities. Mr. Vail has over 25 years of experience in alternative energy, developing technology and building plants in the fuel cell, hydrogen, and methanol businesses. Mr. Kennedy has over 25 years of energy finance expertise in dealing with energy capital markets, debt financing and structured transactions. Joined by other experienced team members, the Arbor Gas team most recently constructed and operated the world’s largest methanol plant in Beaumont, Texas, a multi-billion-dollar project that converted natural gas into commercial methanol.