Written on: July 5, 2022 by ICM
Arlington, VA-based private equity firm GEF Capital has purchased renewable heating oil provider Lifecycle Renewables, Inc. (LRI) based in Tewksbury, MA. Financial terms of the deal were not disclosed; Boenning & Scattergood served as financial advisor to Lifecycle Renewables, which was backed by WindSail Capital Group.
GEF Capital has structured its investment in LRI to help the company continue to increase production of its trademarked biogenic fuel, LR100™, and to expand its geographic reach beyond the Northeast and Mid-Atlantic to meet the growing demand for sustainable fuels in North America.
Lifecycle Renewables collects used cooking oil (UCO) from its foodservice partners and converts it into a renewable heating oil, LR100™, which reduces greenhouse gas emissions by as much as 80% compared to conventional heating oil derived from fossil fuels. District energy systems, academic institutions, and healthcare facilities are among the customers that rely on LR100™ to not only meet their heating needs, but to do so in a way that helps these customers reach their Net Zero carbon emissions targets.
“We are excited to partner with GEF Capital in this next phase of development for Lifecycle Renewables,” said Rory Gaunt, Lifecycle Renewables’ Founder & CEO. “As our clients seek to expand their use of renewable biofuels, Lifecycle stands ready to support them. The investment from GEF Capital will help the company continue to scale to meet an increasingly diverse set of customers looking for solutions to meet their carbon emissions goals.”
“Lifecycle Renewables falls squarely within our core investment theme of supporting companies that provide innovative climate change and pollution mitigation solutions” said Daniel Prawda, Managing Partner at GEF Capital who led the Lifecycle investment. “At a time when institutions are seeking strategies to attain Net Zero targets, Lifecycle provides an easy, low cost, low risk and highly effective step towards decarbonizing emissions tied to heating.”
Catherine Lien, a VP at GEF Capital who co-led the investment in Lifecycle added: “We are very excited to partner with Lifecycle Renewables’ management team to support the continued growth of the business and the further adoption of LR100™. As innovators of low-carbon fuel solutions, Lifecycle Renewables has developed the types of novel approaches to emissions reduction that are becoming increasingly critical to support the energy transition and combat climate change. We look forward to working with the Lifecycle team to expand these solutions to meet market demand.”
“We are proud of everything Rory and the Lifecycle Renewables team have accomplished over the last five years in creating a new path to decarbonize the liquid heating fuels market in the Northeast and we look forward to great things from their partnership with GEF Capital,” said Ian Bowles, Managing Director of WindSail Capital Group.