Evolve Transition Infrastructure LP (“Evolve”) (NYSE American:
SNMP), a publicly traded limited partnership focused on the
acquisition, development and ownership of infrastructure critical
to the transition of energy supply to lower carbon sources, and
HOBO Renewable Diesel, LLC (“HOBO”), a renewable fuel project
developer, today announced an agreement for Evolve to fund the
construction of HOBO’s initial project that is expected to produce
more than 120 million gallons of renewable fuels annually (the
“Fuels Project”).
In furtherance of the Fuels Project and to support Evolve’s
energy transaction focus, key members of the HOBO leadership team
will join Evolve’s management team effective December 1st, 2021.
HOBO Co-Founder and Chief Executive Officer Randy Gibbs will join
Evolve as the new Chief Executive Officer of, and as a member of
the board of directors of Evolve’s general partner, HOBO Co-Founder
and President Mike Keuss will join Evolve as the new President and
Chief Operating Officer of Evolve’s general partner, and HOBO’s
Chief Financial Officer Jonathan Hartigan will join Evolve as the
new President and Chief Investment Officer of Evolve’s general
partner. Each of Messrs. Gibbs, Keuss and Hartigan will accept
employment with Evolve’s general partner effective November 3,
2021, and will transition to their respective director and
executive roles effective December 1, 2021. Messrs. Gibbs, Keuss
and Hartigan have each had long and successful careers in both the
fossil fuel and renewable energy spaces and bring extensive
experience in project development, engineering, operations, and
financing to Evolve’s management team. Gerald Willinger, the
current Chief Executive Officer of Evolve’s general partner, plans
to resign on December 1st but will assist in the onboarding of new
management in November to ensure a smooth transition. Charles Ward,
the current Chief Financial Officer of Evolve’s general partner,
will continue in his role along with other existing Evolve
employees.
Subject to the satisfaction of certain conditions, including
HOBO securing a long-term strategic offtake agreement for the Fuels
Project, Evolve will exclusively fund the development and
construction of the Fuels Project and future renewable fuels
projects that can produce renewable diesel and sustainable aviation
fuel (“SAF”) and contribute to the advancement of the transition to
a low-carbon world. Renewable diesel and SAF are unique drop-in
fuels that are immediately consumable by existing automotive and
airplane engines and reduce carbon emissions relative to petroleum
based products. These drop-in fuels are in increasingly high demand
by customers, including the US federal government, as more
organizations embrace de-carbonization. HOBO and Evolve are also
considering incorporation of additional carbon reduction
opportunities into the Fuels Project and future projects which the
management teams believe could result in the production of some of
the lowest carbon intensity fuels in the US.
“We believe the initial and future HOBO projects are extremely
attractive opportunities to execute on our previously announced
business strategy shift to focus on the acquisition and development
of infrastructure critical to the transition of energy supply to
lower carbon sources. Randy, Mike and Jonathan are proven leaders
and their skill sets and experience will be tremendous complements
to our existing team,” said Chuck Ward, Chief Financial Officer of
Evolve.
“Inclusive of Evolve’s participation in the previously announced
Levo JV opportunity focused on fleet electrification, Stonepeak
believes pursuing renewable fuels projects with HOBO further
solidifies Evolve’s standing as a diversified energy transition
vehicle with the full support of a strong sponsor,” said Michael
Bricker, a member of the board of directors of Evolve’s general
partner and Managing Director at Stonepeak Partners LP, a leading
alternative investment firm specializing in infrastructure and real
assets and an affiliate of Evolve’s general partner.
“HOBO management is thrilled to collaborate with Evolve and
Stonepeak in this exciting and differentiated renewable fuel
production platform.” said Randall Gibbs, Co-Founder and CEO of
HOBO and incoming CEO of Evolve. “Our shared vision is to build
multiple plants of similar design levering off of what we believe
are strategic advantages when compared to our competitors.”
“We believe HOBO’s strategy of building for purpose renewable
facilities positions our liquid renewable fuels at the lowest cost
point in the marketplace and gives our customers the shortest time
to commercialization, two primary reasons that we are seeing strong
interest in long-term strategic offtakes for our initial project
and also for additional projects” said Mike Keuss, Co-Founder and
President of HOBO and incoming President and Chief Operating
Officer of Evolve.
About Evolve Transition Infrastructure LPEvolve
Transition Infrastructure LP (NYSE American: SNMP) is a
publicly-traded limited partnership formed in 2005 focused on the
acquisition, development and ownership of infrastructure critical
to the transition of energy supply to lower carbon sources.
Additional information about Evolve can be found in our
documents on file with the SEC which are available on our website
at www.evolvetransition.com and on the SEC’s website at
www.sec.gov.
About HOBO Renewable Diesel, LLCHOBO Renewable
Diesel, LLC, is a developer of renewable fuels projects that
convert agriculture feedstocks into renewable fuels such as
renewable diesel and sustainable aviation fuel. HOBO is
led by an experienced group of energy professionals who have
demonstrated expertise across project development, engineering,
operations, and financing, and the organization has partnered with
a premier team of technology and engineering/construction companies
as well as other advisors. For more information please visit
http://hobord.com.
About Stonepeak Stonepeak is a leading
alternative investment firm specializing in infrastructure and real
assets with approximately $39 billion of assets under management.
Through its investment in defensive, hard-asset businesses
globally, Stonepeak aims to create value for its investors and
portfolio companies, and to have a positive impact on the
communities in which it operates. Stonepeak is headquartered in New
York with offices in Houston, Austin and Hong Kong. For more
information, please visit https://stonepeakpartners.com.
Contacts
EvolveCharles WardChief Financial
Officerir@evolvetransition.com (713) 800-9477
HOBOJonathan HartiganChief Financial
Officerjhartigan@hobord.com(713) 800-2910
StonepeakKate
Beersbeers@stonepeakpartners.com(646) 540-5225
Forward-Looking StatementsThis press release
contains “forward-looking statements” within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements,
other than statements of present or historical fact, included in
this press release are forward-looking statements. Any statements
that refer to Evolve’s future strategy, future investments, future
uses of capital, future operations, plans and objectives of
management or other characterizations of future events or
circumstances, including any underlying assumptions, are
forward-looking statements. Forward-looking statements in this
press release may include, for example, statements about Evolve’s
expected deployment of capital in support of the announced
renewable fuels project, the anticipated benefits of such project,
Evolve’s ability to raise capital for purposes of funding the
development of any renewable fuels project, HOBO’s ability to
execute on the Fuels Project and future projects, customer and
market demand for renewable fuels, including renewable diesel and
SAF, the carbon intensity of fuels produced by the Fuels Project
and future projects, and other statements about Evolve or HOBO. In
some cases, you can identify forward-looking statements by
terminology such as “may,” “expect,” “plan,” “anticipate,”
“believe,” “project” or the negative of such terms or other similar
expressions. These forward-looking statements are based on
management’s current beliefs, expectations and assumptions
regarding the future of Evolve’s business, future plans and
strategies, projections, anticipated events and trends, the economy
and other future conditions.
These forward-looking statements are subject to known and
unknown risks, uncertainties and assumptions about Evolve, HOBO,
the Levo JV opportunity and Stonepeak that may cause Evolve’s
actual results, levels of activity, performance or achievements to
be materially different from any future results, levels of
activity, performance or achievements expressed or implied by such
forward looking statements. Therefore, you should not rely on any
of these forward-looking statements. Management cautions all
readers that the forward-looking statements contained in this press
release are not guarantees of future performance, and actual
results may differ materially from those anticipated or implied in
forward-looking statements. For more information concerning factors
that could cause actual results to differ from those expressed or
forecasted, please read Evolve’s filings with the SEC, with
particular attention to the “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” sections in Evolve’s most recent Annual Report on Form
10-K and Quarterly Report on Form 10-Q, all of which are available
on Evolve’s website at www.evolvetransition.com and on the SEC’s
website at www.sec.gov. These cautionary statements qualify all
forward-looking statements attributable to Evolve or persons acting
on Evolve’s behalf. Except as otherwise required by applicable law,
Evolve disclaims any duty to update any forward-looking statements,
all of which are expressly qualified by the statements in this
section, to reflect events or circumstances after the date of this
press release.
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