US private equity firm Grey Rock Investment Partners has agreed to make a control investment in Vault 44.01, a Calgary-based carbon capture and storage developer. The deal includes a commitment of up to $150 million for Vault to execute on its near-term actionable pipeline of carbon capture and storage projects and to develop further opportunities. The company’s pipeline spans a range of sectors across North America.
DALLAS–(BUSINESS WIRE)–Grey Rock Investment Partners (“Grey Rock”), through its affiliated investment vehicles, today announced an agreement to make a controlling investment in Vault CCS Holdings, LP (“Vault 44.01” or “Vault”) and fund additional growth of the company through a capital commitment of up to USD$150 million. Vault plans to use the committed capital to execute on its near-term actionable pipeline of Carbon Capture and Storage (“CCS”) projects, as well as the continued development of further opportunities in the CCS space. Vault has developed an extensive platform of actionable CCS projects with ethanol facilities in the Midwest region, each of which emits between 200,000 and 500,000 tonnes of CO2 per year; and has secured positions in several high quality, early-stage CCS projects in Canada. Vault’s pipeline of projects spans a range of industrial sectors across multiple regions of North America.
Led by Chief Executive Officer Scott Rennie who has more than 20 years of energy industry experience including leading CCS efforts within ConocoPhillips and Schlumberger Carbon Services, the Vault 44.01 team possesses a comprehensive project development skill set with expertise in geoscience, engineering, land management and project execution.
Similarly, through its energy investments, Grey Rock’s team has a deep technical skill set which is complementary to that of Vault and which has proven valuable as the teams have collaborated closely on certain projects.
“In Grey Rock, we found a like-minded investment partner whose stellar investment track record and technical approach represents the type of capital partner that we feel will support our objective of developing and executing high quality CCS projects with a range of industrial partners across North America,” said Rennie. “Having a partner who understands the fundamentals of our business is critical in moving quickly to bring projects to fruition and support effective scaling of the emerging CCS industry.”
“We find carbon capture and sequestration to be one of the most compelling opportunities in the energy transition. After having met with several CCS teams, it was clear to us that Vault was the right fit for us in how we approach investments,” said Matt Miller, Co-Founder and Managing Director at Grey Rock. “The team evaluates projects from a ‘technical-first’ perspective allowing them to quickly screen opportunities which have a high probability of success and to focus their efforts on high quality projects with compelling risk-reward profiles.”
CCS is the process of capturing CO2 emissions from industrial emitters and converting the CO2 into a liquid form that can be safely transported and sequestered underground permanently. The process reduces the amount of CO2 that would have entered the atmosphere otherwise. The use of CCS significantly reduces a facility’s carbon footprint and supports the global initiative to combat climate change. Vault’s current pipeline of projects has the potential to capture and store up to 25 million metric tonnes of CO2 per year, which is the equivalent of removing 5.4 million cars from the roads per year or building a forest the size of Pennsylvania.
About Grey Rock Investment Partners
Grey Rock Investment Partners is a private equity firm with more than $1.3 billion in asset value. The firm invests across the energy value chain including carbon capture, industrial electrification, power optimization and natural resources. For more information, visit www.grey-rock.com
About Vault 44.01
Vault is a leading carbon capture & storage developer focused on the development, capitalization, and operation of carbon storage assets throughout North America. Vault’s core management, technical, and execution team brings over 40 years of direct carbon sequestration experience, with involvement in the development of carbon storage projects across North America since 2007, including each of the three currently operating carbon storage projects in saline aquifers in North America as well as many others.
Vault’s capabilities in carbon sequestration span feasibility, design, permitting, stakeholder engagement, construction, and operations. The company is currently engaged in 15+ emerging CCS projects throughout North America that range from single emitter sourced, on-site sequestration projects through to the origination and development of large multi-emitter CO2 sequestration hubs. For more information, visit www.vault4401.com.