Stonepeak invests in mission critical energy infrastructure around the world.

“We are at the forefront of investing in the accelerating and globalizing trends toward cleaner liquid fuels and mass electrification required to equitably decarbonize while powering economic activity. Our team possesses deep experience and insight across the transition fuels landscape including gas, renewable natural gas, renewable diesel, and sustainable aviation fuel, all of which benefit from significant tailwinds. We also expect carbon capture and sequestration & storage will remain an attractive area for investment during the transition as traditional energy producers seek to become more efficient and environmentally friendly through utilizing technology-based solutions.”

Jack Howell
Senior Managing Director, Co-Head Americas

A sector in transition

Few sectors are evolving as rapidly as the global energy sector. Global demand for energy continues to rise in tandem with increasing pressure on both the public and private sectors to find cleaner ways of meeting that demand. Investing in this rapidly shifting environment requires us to balance the world’s desire for a green future with energy security and reliability.

Our ability to nimbly shift focus and invest behind emerging and durable trends is both critical to our ongoing success and reflected in our energy portfolio’s accelerating progression toward lower carbon and renewable energy investments. Our team applies a thematic and relationship-driven approach to sourcing opportunities in this sector, coupled with strong operational acumen and a rigorous focus on downside protection. Changing market conditions and new technologies create a range of additional investment opportunities, from LNG and traditional fuel plant conversions to renewable fuels and electric vehicle infrastructure.

A growing role for renewable power

Our existing global portfolio of renewables investments includes offshore and onshore wind platforms, as well as utility-scale and commercial and industrial solar platforms. Renewable energy provides a critical pathway to decarbonize the electricity sector – it is an increasingly attractive investment area given continued economic and public policy tailwinds, combined with technological progress.

Safeguarding energy sector security and reliability

We were early to recognize the important role natural gas would play in transitioning away from higher emission baseload power sources such as coal and oil. We also recognize the importance of eliminating methane leakage, a gas with 80x the warming impact of CO2. Our responsible ownership focus not only supports safe and reliable operations, but importantly informs our view that technological developments with respect to carbon abatement and cleaner burning gases are inevitable, necessary, and represent an exciting new area for investment.

Electric vehicles are expected to make up 50% of total US new vehicle sales by 2035
IHS Markit (May 2021)
By 2050, Hydrogen energy could reduce global GHG emissions by 5 to 6 gigatons annually
Boston Consulting Group (April 2021)
Solar energy could generate up to 40% of the nation’s electricity by 2035
U.S. Department of Energy (September 2021)

“Working in an increasingly supportive regulatory environment, we expect the economics of the renewables sector to improve considerably and to see more opportunities for investment in renewable fuels, hydrogen fuel, renewable power and batteries, and electric vehicles globally.”

Hajir Naghdy
Senior Managing Director, Head of Asia and Middle East

 

The move toward renewable fuels

Renewable fuels offer a key transition opportunity to cleaner sources of energy supply that are proven technologically and operating today. Renewable diesel, sustainable aviation fuel, and renewable natural gas all serve as cleaner fuel sources relative to fossil fuel alternatives and are already compatible with existing transportation and technology.

Increasing role of hydrogen in the energy mix

Hydrogen presents a compelling opportunity for investment as it becomes more widely recognized as another option for cleaner power generation and harder to electrify transport and industrial processes. Widespread use of hydrogen as a clean energy source should be a significant contributor to reduced global CO2 emissions over the coming years.

The rise of electric vehicles, batteries and storage

The global electric vehicle market is expected to see continued high growth. Batteries will also be a key component as EV growth materializes alongside incremental power demand. The proliferation of electric vehicles and associated infrastructure will require substantial private investment, and we believe the electrification of critical transportation assets has compelling long-term industry and ESG tailwinds.

Responsibly owning and operating traditional energy assets

As the global transition toward renewables and away from traditional energy sources continues, we remain believers that the world is better off if traditional energy assets are held and operated by truly responsible owners who build ESG considerations into the forefront of their investment case. While these assets represent a shrinking part of our overall portfolio, we seek to carefully steward and manage our traditional energy assets with a strong focus on operational improvement from an ESG perspective.

Portfolio highlights

Workers fix solar panels

Powering the transition to solar energy infrastructure

Powering the transition to solar energy infrastructure

Madison Energy is accelerating the energy transition by bringing solar energy generation and energy storage to universities, distribution centers, data centers, and other commercial, municipal, and industrial customers across North America.