NGP Energy Capital Management (“NGP”) is pleased to announce an investment in NGP Energy Technology Partners III, L.P. (“NGP ETP3”) through an equity commitment from NGP Natural Resources XII, L.P. NGP ETP3 will pursue opportunities arising from technology’s dramatic transformation of global energy markets.
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NGP ETP3 will target investments between $20-30 million of growth capital in companies with products, services or technologies serving the renewable energy, power, energy storage, energy efficiency, environmental, and transportation sectors. Philip Deutch will lead the investment team of NGP ETP3.
NGP ETP3 continues the 15-year legacy of energy technology investing by Mr. Deutch in affiliation with NGP, which includes investments in the following:
- Renewable Energy Group, Inc. (NASDAQ-REGI), an international producer of cleaner fuels and North America’s largest producer of biodiesel. REG utilizes an integrated procurement, distribution and logistics network to operate 14 biorefineries in the U.S. and Europe that produced over half a billion gallons of fuel delivering over four million metric tons of carbon reduction in 2018. (www.regi.com)
- TPI Composites, Inc. (NASDAQ-TPIC), the largest U.S.-based independent manufacturer of composite wind blades. TPI operates facilities in North America, Europe and Asia and has manufactured more than 52,000 wind turbine rotor blades over ten years. (www.tpic.com)
- Community Energy Inc., a leading developer of wind, solar and energy storage projects. CEI has a twenty-year track record of providing reliable, competitive renewable energy projects that meet customer energy and sustainability goals. CEI shaped large-scale wind development in the Eastern U.S., led the growth of solar nationally, and has developed more than 1,500 megawatts of wind and solar in its history. (www.cei.com)
Mr. Deutch is one of the first investors in the United States to focus on investing in energy technology. He has an extensive track record of working with portfolio companies to create value and establish strategic partnerships. In addition to REGI, TPIC, and Community Energy, Mr. Deutch has served on the Boards of Directors of American Wind Capital, Evergreen Solar, Beacon Power, and Northern Power Systems.
Mr. Deutch said: “In the last 10 years, we have seen the cost of solar and wind power decline 70-90%, annual plug-in electric vehicle sales exceed 2 million units globally, and U.S. electric storage capacity grow by over 20x. It is estimated that 78% of all new electric generation in the U.S. in 2020 will come from renewable sources, and capital expenditures associated with maintaining and improving the electric grid exceed $100 billion annually. Companies around the world are applying both proven and emerging technologies to all parts of the energy value chain. These factors, plus growing public and private sector efforts to diversify and de-carbonize the world’s energy supply, make it a compelling time to be investing in energy technology.”
Tony Weber and Chris Carter, Managing Partners of NGP, said: “Global energy markets are in the early stages of a massive, multi-decade transformation that will create attractive investment opportunities for the experienced, disciplined energy investor. We look forward to continuing our long-standing investment partnership with Phil and adding to NGP’s track record of thoughtful and innovative investing.” James Wallis, Partner at NGP, added: “NGP ETP3 is well positioned to identify and add value to the most promising technology platforms empowering the world’s energy transition efforts. We look forward to working closely alongside Phil in this endeavor.”
Founded in 1988, NGP is a premier investment franchise in the energy industry, with over $20 billion in cumulative equity commitments organized to make strategic investments in the energy and natural resources sectors. NGP’s 30-year history gives it unique insight into the drivers of value creation in all facets of the energy industry. For more information visit www.ngpenergycapital.com.
ABOUT NGP ETP3
NGP ETP3 invests in innovative technology companies seeking to transform global energy markets. NGP targets growth capital investments in companies with products, services or technologies serving the renewable energy, power, energy storage, energy efficiency, environmental, and transportation sectors. For additional information, please visit www.ngpetp3.com.