NGP (Natural Gas Partners), a private equity fund that provides capitals for the energy industry since 1988, claims to invest tens of millions of dollars into the new startups which deal with renewable energy and its storage, as well as those connected to power and transportation sectors.
On March 2, 2020, NGP Energy Capital Management announced an investment in the NGP Energy Technology Partners III (NGP ETP) fund. Mr. Philip Deutch, which has been the leading investor of the fund for years, will lead the team of NGP ETP to provide investments between $20M and $30M of growth capital. The investments are aimed at the companies that manufacture products, provide services, and develop new technologies in sectors mostly connected with renewable and alternative energy.
“In the last ten years, we have seen the cost of solar and wind power decline 70 to 90 percent, annual plug-in electric vehicle sales exceed two million units globally, and U.S. electric storage capacity grow by over 20 times,” Deutch writes. “It is estimated that 78 percent of all new electric generation in the U.S. in 2020 will come from renewable sources, and capital expenditures associated with maintaining and improving the electric grid exceed $100 billion annually.”
Philip Deutch, the NGP managing partner, has been making investments into the energy industry since 1997. He was mostly interested in renewable energy technologies, energy management, solar and wind power industries, and power electronics companies. Deutch is now a member of the External Advisory Board of the MIT Solar Study which resulted in a profound “The Future of Solar Energy” research. Phil is also a board member of Catapult Energy Services, Oilfield Water Logistics and TPI Composites.
NGP ETP was founded in 2005 by Philip Deutch to focus on new and developing companies that are making products and providing services to power, environmental, gas, oil, energy efficiency and alternative energy sectors. Mostly, the fund aims at businesses which have meaningful commercial revenue/cash flow. The investments can be made in a form of capital (growth or buyout), start-up funding, private investments, and more.
Funding is not the only way the organization supports the energy-related companies. It also provides support in a form of long-term strategic plans, guidance, sharing practices across the portfolio, sourcing debt capital, etc.
The NGP ETP states that supporting oil, gas, power, and alternative energies is crucial nowadays, since it’s the it’s not only an important part of the US current economics, but also a way to make the life of future generations more stable and independent of the foreign energy sources.