Dallas-based private equity firm Grey Rock Investment Partners has announced a major investment in Colorado-based CarbonCycle LLC. The firm plans to make a capital commitment of up to $100 million, which will be used to fund the growth of the company. Grey Rock is known for its focus on making positive environmental impact investments.
CarbonCycle aims to develop Carbon Capture and Sequestration (CCS) projects, with a particular focus on natural gas processing facilities and other industrial emitters. The company’s leadership team has a combined 100+ years of experience in the energy, engineering, and geological sectors, positioning them well to successfully develop world-class CCS projects.
Matt Miller, co-founder and managing director at Grey Rock, expressed excitement about partnering with CarbonCycle and the opportunity to reduce CO2 emissions from natural gas processing facilities. He emphasized the potential to not only make a positive environmental impact but also deliver healthy returns for Grey Rock’s partners.
Grey Rock stated that the use of CCS significantly reduces a facility’s carbon footprint and supports the global initiative to combat climate change. By capturing CO2 emissions from industrial emitters and converting it into a liquid form that can be safely transported and permanently sequestered underground, CCS prevents CO2 from entering the atmosphere without disrupting critical industrial operations.
Grey Rock Investment Partners has more than $1.3 billion in asset value across its private equity fund platform. It invests across the energy value chain, with a focus on natural resources, carbon capture, industrial electrification, and power optimization.
The investment in CarbonCycle is part of Grey Rock’s net zero opportunities fund, which also includes other innovative companies such as Vault, Conduit, and Rebellion. Grey Rock sees CarbonCycle’s emphasis on CCS opportunities as a complementary addition that will enhance the achievements of the firm and its associated companies in the industrial sector.
Grey Rock has built a comprehensive in-house team with expertise in subsurface geology, engineering, and land and title through its existing energy investments. This team will provide support to CarbonCycle in its project development efforts.
Overall, the investment by Grey Rock Investment Partners in CarbonCycle represents a significant step towards reducing CO2 emissions and combating climate change. With their combined expertise and resources, the two companies are well-positioned to make a positive impact in the industrial sector and drive the development of world-class CCS projects.