Energy-focused private equity firm Denham Capital has agreed to acquire a majority stake in Australian biofuel company Plantation Energy for up to $80 million in equity.
Plantation Energy manufactures “densified biomass fuel pellets”, a form of renewable energy created from the residue of sustainable plantations. The pellets are used alongside other fossil fuels for industrial power generation.
The capital will be used to fund the construction of a new manufacturing plant in Western Australia.
Denham, which last year spun out of collapsed hedge fund Sowood Capital, closed a $2 billion global energy fund in May. It invests across all stages and segments of capital structures.
The firm invests across a wide range of energy sectors including oil and gas, mining, timber, power, carbon assets and energy-related infrastructure and services.
Denham agreed three investments in August. The firm invested $50 million in ice-melting salts producer CariSal Investment Holdings, $165 million in oilfield drilling services company Multi-Shot and $60 million in biosolid recycler VitAG.
Denham has offices in Boston, Houston, Short Hills, New Jersey, Sao Paulo and London.