Key Takeaways
- • Bain Capital Private Equity completed a significant equity investment in EcoCeres, Inc., an Asia-based advanced biorefinery company, announced January 12, 2023.
- • EcoCeres produces HVO and SAF at a combined commercially available capacity of 300,000 tons per annum and is one of few players globally producing commercialized HVO, SAF and cellulosic ethanol.
- • The deal follows a Series A investment from Kerogen Capital in February 2022; Towngas (Hong Kong & China Gas) incubated the company and remains a strategic shareholder.
- • Bain Capital's investment is reported by its own disclosures as more than US$700 million, its most significant energy-transition investment to date.
- • Bain will support EcoCeres' international expansion and scaling of renewable energy technologies, with Bain's Jonathan Zhu describing a role in helping clients meet decarbonization targets.
Summary
Bain Capital Private Equity ("Bain Capital") announced on January 12, 2023 that it has completed a significant equity investment in EcoCeres, Inc. ("EcoCeres"), an Asia-based advanced biorefinery company with in-house R&D capabilities. The transaction follows a Series A investment in EcoCeres from Kerogen Capital in February 2022. The primary announcement did not disclose a deal value, but Bain's own portfolio materials state that the firm invested more than US$700 million in EcoCeres in 2022, describing it as Bain Capital's most significant energy-transition-related investment. Press coverage of the deal characterized Bain as the second outside investor after Finland's Neste in the company's capital structure. Kirkland & Ellis advised Bain Capital Private Equity on the transaction.
EcoCeres converts waste-based biomass into biofuels, biochemicals and biomaterials using proprietary technologies. According to the company, it is one of few producers worldwide with commercialized hydro-treated vegetable oil (HVO), sustainable aviation fuel (SAF) and cellulosic ethanol, with commercially available combined capacity of 300,000 tons per annum of HVO and SAF in operation. Its HVO supports European Union greenhouse gas reduction targets under the Renewable Energy Directive framework. The company has received ISCC CORSIA Plus certification for SAF supply to the global aviation industry and expects to produce cellulosic ethanol from agricultural waste.
EcoCeres co-founder and CEO Philip Siu described the Bain partnership as a vote of confidence in the company's leadership in decarbonization, and said both Bain and Kerogen had made sound investment decisions. Alan Chan, Chief Investment Officer of Hong Kong & China Gas Limited (Towngas), which incubated EcoCeres and remains a strategic shareholder, said a Bain representative on the board would accelerate growth, particularly international expansion. Jonathan Zhu, Partner and Co-Head of Bain Capital Private Equity in Asia, cited the company's R&D capabilities, including its use of 100% waste-based feedstocks and significant carbon savings. James Tam, also a Partner at Bain Capital Private Equity in Asia, said the investment reflects Bain's commitment to sustainable growth and reducing climate impact.
The company says Bain's industry experience and resources will support its international scale-up and renewable energy technology development. Bain Capital Private Equity, founded in 1984, has more than 280 investment professionals and has made primary or add-on investments in more than 1,100 companies. Bain Capital manages approximately $160 billion in total assets across private equity, credit, public equity, venture capital and real estate.
EcoCeres converts waste-based biomass into biofuels, biochemicals and biomaterials using proprietary technologies. According to the company, it is one of few producers worldwide with commercialized hydro-treated vegetable oil (HVO), sustainable aviation fuel (SAF) and cellulosic ethanol, with commercially available combined capacity of 300,000 tons per annum of HVO and SAF in operation. Its HVO supports European Union greenhouse gas reduction targets under the Renewable Energy Directive framework. The company has received ISCC CORSIA Plus certification for SAF supply to the global aviation industry and expects to produce cellulosic ethanol from agricultural waste.
EcoCeres co-founder and CEO Philip Siu described the Bain partnership as a vote of confidence in the company's leadership in decarbonization, and said both Bain and Kerogen had made sound investment decisions. Alan Chan, Chief Investment Officer of Hong Kong & China Gas Limited (Towngas), which incubated EcoCeres and remains a strategic shareholder, said a Bain representative on the board would accelerate growth, particularly international expansion. Jonathan Zhu, Partner and Co-Head of Bain Capital Private Equity in Asia, cited the company's R&D capabilities, including its use of 100% waste-based feedstocks and significant carbon savings. James Tam, also a Partner at Bain Capital Private Equity in Asia, said the investment reflects Bain's commitment to sustainable growth and reducing climate impact.
The company says Bain's industry experience and resources will support its international scale-up and renewable energy technology development. Bain Capital Private Equity, founded in 1984, has more than 280 investment professionals and has made primary or add-on investments in more than 1,100 companies. Bain Capital manages approximately $160 billion in total assets across private equity, credit, public equity, venture capital and real estate.
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