San Antonio-based EnCap Flatrock Midstream, or EFM, has invested $350 million in Elysian Carbon Management, a company specializing in carbon capture and storage, according to an announcement by Elysian on Tuesday.
EFM Managing Partner David Kurtz, who serves on the Elysian board of directors, called Elysian a key player in developing carbon reduction projects in North America.
“Few independent teams in this nascent sector have a comparable depth and breadth of the technical, financial and operational experience needed to bring CCS projects to fruition," he said.
The company's services focus on industrial and power facility owners transitioning to the use of low-carbon products. Elysian owns and develops carbon capture assets across North America from numerous sources.
“EFM’s unique experience in providing venture capital to the midstream sector, plus the team’s relationships and expertise in asset development and management makes the firm the perfect partner for Elysian," said Elysian CEO Bret Logue in a release.
Sidley Austin LLP represented Elysian in the $350 million deal, led by firm partner Irving Rotter. Shearman and Sterling LLP served as ECM's legal adviser in the deal with partner Sarah McLean at the helm.
EFM provides growth capital to teams managing midstream infrastructure across North America, with two other offices in Oklahoma City and Houston. The company was formed in 2008 when EnCap Investments LP and Flatrock Energy Advisors LLC partnered. The company manages just under $9 billion in investment commitments from institutional investors.
In 2019, EFM invested $400 million to create Ironwood Midstream Energy Partners LLC, which recently expanded its crude oil midstream footprint in the Eagle Ford Shale by merging assets with Nuevo Midstream Dos, also backed by EFM.
In 2020, Tatanka Midstream LLC was founded after a $500 million investment from EFM.
