Key Takeaways
- • Project Canary announced on June 7, 2022 that it has expanded its strategic relationship with Quantum Energy Partners, linking Quantum's sustainability-linked private capital with Project Canary's third-party emissions monitoring data.
- • The arrangement targets improved ESG performance in the energy sector by tying financing terms to sustainability performance targets based on KPIs including emissions.
- • Quantum, founded in 1998, describes itself as a leading global provider of private equity, credit, structured capital and venture capital to the energy and energy transition sectors, with more than $18 billion in capital commitments since inception.
- • Project Canary CEO Chris Romer argues that facility-level methane and GHG data is becoming the new minimum standard for ESG measurement.
- • Quantum co-president Ajay Khurana cited methane emissions, water consumption, natural gas flaring and renewable power utilization as priority areas for influence.
Summary
Project Canary, a Denver-based climate tech and environmental assessment company, announced that it has expanded its strategic relationship with Quantum Energy Partners ('Quantum') related to Quantum's credit and structured capital investment efforts, according to a Business Wire release. Quantum describes itself as a leading provider of private capital to the energy industry, focused on sustainability-linked capital for both public and private energy companies. The two firms believe meaningful synergies exist between Quantum's sustainability-linked investment initiatives and Project Canary's emissions monitoring solutions.
Sustainability-linked investments incentivize operators to achieve sustainability performance targets (SPTs) tied to key performance indicators, including emissions. Project Canary supplies regular, third-party facility-level data on environmental attributes such as methane emissions, which the companies say allows operators and investors to differentiate their assets and update ESG profiles with current performance data. The arrangement seeks to expand adoption of facility-level environmental assessments and continuous methane monitoring among stakeholders across the energy value chain. Methane is a greenhouse gas that traps significantly more heat than carbon dioxide.
Project Canary CEO Chris Romer said high-fidelity, facility-level data covering methane and other GHG emissions 'is likely to be the new minimum standard,' adding that 'financial markets want a gold standard for measurable and validated ESG data.' Quantum co-president Ajay Khurana said private capital can help incentivize companies to meet ESG goals across areas including methane emissions, water consumption, natural gas flaring and renewable power use, and that Project Canary can supply the emissions data needed to validate progress.
Quantum, founded in 1998, provides private equity, credit, structured capital and venture capital to responsibly sourced energy and energy transition and decarbonization sectors, which it refers to as the 'Sustainable Energy Ecosystem.' Together with affiliates, it has managed more than $18 billion in capital commitments since inception. Project Canary, a SaaS-based data analytics company formed as a Public Benefit Corporation, offers sensor-based methane detection and emissions quantification for oil and gas, along with Aeris Technologies laser-based analyzers covering ethane, nitrous oxide, formaldehyde, ethylene oxide, benzene and other emissions. The announcement did not disclose financial terms of the arrangement.
Sustainability-linked investments incentivize operators to achieve sustainability performance targets (SPTs) tied to key performance indicators, including emissions. Project Canary supplies regular, third-party facility-level data on environmental attributes such as methane emissions, which the companies say allows operators and investors to differentiate their assets and update ESG profiles with current performance data. The arrangement seeks to expand adoption of facility-level environmental assessments and continuous methane monitoring among stakeholders across the energy value chain. Methane is a greenhouse gas that traps significantly more heat than carbon dioxide.
Project Canary CEO Chris Romer said high-fidelity, facility-level data covering methane and other GHG emissions 'is likely to be the new minimum standard,' adding that 'financial markets want a gold standard for measurable and validated ESG data.' Quantum co-president Ajay Khurana said private capital can help incentivize companies to meet ESG goals across areas including methane emissions, water consumption, natural gas flaring and renewable power use, and that Project Canary can supply the emissions data needed to validate progress.
Quantum, founded in 1998, provides private equity, credit, structured capital and venture capital to responsibly sourced energy and energy transition and decarbonization sectors, which it refers to as the 'Sustainable Energy Ecosystem.' Together with affiliates, it has managed more than $18 billion in capital commitments since inception. Project Canary, a SaaS-based data analytics company formed as a Public Benefit Corporation, offers sensor-based methane detection and emissions quantification for oil and gas, along with Aeris Technologies laser-based analyzers covering ethane, nitrous oxide, formaldehyde, ethylene oxide, benzene and other emissions. The announcement did not disclose financial terms of the arrangement.
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