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NGP Energy Capital starts fund focused on $20M and $30M investments in power transformation

A private equity fund guided by longtime energy investor Philip Deutch will commit tens of millions in new capital to renewable energy, power, energy storage, efficiency and transportation sector startups.

NGP Energy Capital Management announced its investment in the spinoff NGP Energy Technology Partners III (NGP ETP) fund. Deutch will lead the team of NGP ETP which will target investments between $20 million and $30 million of growth capital to companies offering products, services and technologies in those sectors.

“In the last 10 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 said in a statement. “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

“Companies around the world are applying both proven and emerging technologies to all parts of the energy value chain,” he added. “These factors, plus growing public and private sector efforts to diversify and de-carbonize the world’s energy supply, make it a compelling time to be investing in energy technology.”

Deutch began making energy technology investments in 1997. Those companies included biodiesel producer and biorefinery operator Renewable Energy Group, wind blade manufacturer TPI Composites and Community Energy, a developer of wind, solar and energy storage projects.

He also has served on the boards of American Wind Capital, Evergreen Solar, Beacon Power and Northern Power Systems.

“Global energy markets in the early stages of a massive, multi-decade transformation that will create attractive investment opportunities for the experience, disciplined energy investor,” reads a statement by NGP managing directors Tony Weber and Chris Carter. “We look forward to continuing our long-standing investment partnership with Phil and adding to NGP’s track record of thoughtful and innovative investing.”

NGP was founded in 1988 and now has more than $20 billion in equity committed to the energy and natural resources sectors.

“NGP ETP is well positioned to identify and add value to the most promising technology platformers empowering the world’s energy transition efforts,” NGP partner James Wallis said. “

We look forward to working closely alongside Phil in this endeavor.”