Grey Rock Investment Partners (“Grey Rock”), through its affiliated investment vehicles, today announced an agreement to make a controlling investment in CarbonCycle, LLC (“CarbonCycle”) to fund additional growth of the company through a capital commitment of up to $100 million. CarbonCycle plans to use the committed capital to execute on its strategy to develop Carbon Capture and Sequestration (“CCS”) projects, primarily focusing on natural gas processing facilities and other related industrial emitters. CarbonCycle’s leadership team has combined 100+ years of energy, engineering, and geological experience.
“We are excited about our partnership with the CarbonCycle team. With more than 450 natural gas processing facilities in the United States emitting more than 56 million metric tonnes of CO2 each year, we see a significant opportunity to mitigate carbon emissions and deliver healthy risk-adjusted returns for our partners,” said Matt Miller, Co-Founder and Managing Director at Grey Rock. “We believe the CarbonCycle team is well positioned to partner with midstream companies and other industrial emitters to attack this opportunity set.”
Led by Chief Executive Officer Rich DiMichele whose career spans more than 30 years in the energy industry, including extensive experience developing and operating midstream natural gas infrastructure, and Kent Bowker, EVP of Subsurface, who has more than 40 years of geology experience including as a pioneer in cracking the code for shale development with Mitchell Energy, the CarbonCycle team possesses the technical and project development experience to successfully develop world-class CCS projects. Similarly, through its existing energy investments, Grey Rock has built a comprehensive in-house team with skill sets spanning all phases of energy development including subsurface geology, engineering, and land and title to support CarbonCycle in its project development efforts.
“We are excited to partner with Grey Rock. They have an exceptional track record of originating and managing valuable energy investments and are bringing the same creativity and focus to the energy transition space,” said DiMichele. “CarbonCycle joins a group of leading-edge portfolio companies within Grey Rock’s net zero opportunities fund, including Vault, Conduit, and Rebellion. Our focus on CCS opportunities with midstream and other industrial partners will complement and build on what Grey Rock and these other companies have already accomplished.”
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, reducing the amount of CO2 that would have otherwise entered the atmosphere without interrupting critical industrial operations. The use of CCS significantly reduces a facility’s carbon footprint and supports the global initiative to combat climate change.