Orion Energy, GCM Grosvenor and Voya In Bakersfield Renewable Fuels Deal
Orion Energy Partners, GCM Grosvenor and Voya Investment Management have entered into a capital partnership with Bakersfield Renewable Fuels, a special purpose vehicle wholly owned by Global Clean Energy Holdings, Inc., which was created to purchase an existing refinery in Bakersfield, California. BKRF will retool a portion of the refinery into a renewable diesel ("RD") bio-refinery.
The three firms are putting in a combined $365mn into the deal; GCM Grosvenor is providing $85mn of the total. The investment is part of GCM Grosvenor's Labor Impact Strategy, which focuses on investing in infrastructure assets that rely on collaboration with union labor to seek opportunities that generate high-quality risk-adjusted returns for investors.
"GCM Grosvenor is excited to announce this collaboration with Orion Energy and Voya to finance GCE's transformative refinery that will move us one step closer to a sustainable future," said Matthew Rinklin, Managing Director at GCM Grosvenor. "This transaction is a great example of our Labor Impact Strategy's ability to provide structured financing solutions and infrastructure development expertise in partnership with union labor to help drive positive investment outcomes."
"We are pleased to partner with GCM Grosvenor and Voya on this financing to support GCE," said Gerrit Nicholas, Founder and Managing Partner at Orion Energy Partners. "This investment in a truly unique, independent, renewable refinery is a terrific example of Orion Energy's value proposition in providing creative and deeply structured financing solutions for environmentally innovative energy infrastructure."
"Voya is thrilled to work with GCE, Orion, and GCM Grosvenor on this groundbreaking transaction, which is a perfect fit with Voya's recent expansion into the renewable energy and sustainable infrastructure space, adding to Voya's three decades of diversified infrastructure lending," said Tom Emmons, Co-Head, Direct Infrastructure/Private Credit.
Latham & Watkins LLP acted as legal counsel to Orion Energy. Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to GCM Grosvenor and Voya.
© The Sortino Group Ltd
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency or other Reprographic Rights Organisation, without the written permission of the publisher. For more information about reprints from AlphaWeek, click here.