Apollo Funds Invest in Freedom CNG for Renewable Future

Apollo Funds Invest in Freedom CNG for Renewable Future

HOUSTON and NEW YORK – Apollo (NYSE: APO) has announced a significant acquisition that marks a pivotal moment in the renewable energy sector. The Apollo-managed funds have acquired a majority stake in Freedom CNG, a prominent provider of compressed natural gas (CNG) and renewable natural gas (RNG) fueling infrastructure, primarily located in Texas.

Founded in 2012, Freedom CNG has established a rapidly expanding network of high-capacity fueling stations strategically positioned in the Houston Metro area. This network serves a diverse array of customers, including leading logistics and transportation firms, refuse companies, municipalities, school districts, and other substantial fuel consumers. Their mission aligns with ongoing decarbonization efforts by providing efficient renewable energy solutions.

Growth Potential in the Renewable Gas Sector

Apollo Partner Scott Browning expressed enthusiasm about Freedom's growth potential. "Freedom has successfully cultivated a robust portfolio of RNG fueling stations that possess significant growth opportunities fueled by strong relationships with established customers and promising new development prospects. Our team is eager to collaborate with Bill, Ronny, and the entire Freedom team to further develop Freedom’s platform through both organic and inorganic growth initiatives," he stated.

Browning highlighted the inherent market demand for innovative downstream fueling infrastructure, noting that Apollo's expertise in the natural gas value chain complements their commitment to supporting the energy transition. As fuel alternatives move towards sustainable solutions, Freedom aims to play a critical role in this vital transformation.

Meeting Transportation Energy Needs

With transportation accounting for a substantial portion of U.S. energy consumption—over 25%—there is an urgent need to transition this sector towards sustainable energy. CNG, particularly when utilized as RNG sourced from landfills and similar facilities, represents a cost-effective solution that can significantly reduce emissions while maintaining operational efficiency. The demand for RNG is anticipated to accelerate, and Freedom is strategically positioned to meet this growing need.

Freedom's Commitment to Sustainable Solutions

Freedom CNG’s Managing Partners, Bill Winters and Ronny Cuenod, welcomed the partnership with Apollo Funds, emphasizing the additional resources and experience that will enhance their ability to meet increasing demand for low-carbon alternative fuels. "We are excited about the future as we aim to broaden our reach and further our commitment to sustainability while enhancing the economic viability of our services," they remarked.

Apollo’s Broader Investment Strategy

In the past five years, Apollo-managed funds have strategically deployed roughly $40 billion into various energy transition and sustainability-related investments. This includes efforts in clean energy and infrastructure spanning across offshore and onshore wind, solar energy, storage solutions, renewable fuels, and more. The holistic approach taken by Apollo underscores their commitment to fostering innovative solutions that bolster the energy landscape.

A Partnership for the Future

With this acquisition, Apollo Funds not only enhance their investment in the renewable sector but also position Freedom CNG to scale its operations effectively, catering to the increasing market demands for clean and sustainable energy solutions. The synergy between Apollo's capital and Freedom’s innovative infrastructure development is set to create a formidable partnership that shapes the future of renewable natural gas.

Frequently Asked Questions

What is the significance of Apollo Funds acquiring Freedom CNG?

The acquisition represents a strategic move to enhance renewable natural gas infrastructure, supporting the energy transition while meeting growing customer demands.

How will this partnership affect renewable energy in transportation?

This partnership aims to expand the availability of CNG and RNG fueling solutions, contributing significantly to emission reductions in the transportation sector.

What is Freedom CNG's mission?

Freedom CNG’s mission is to provide clean and affordable CNG to various high-volume fuel users, empowering them to reduce emissions and costs.

What type of customers does Freedom CNG serve?

Freedom CNG serves a diverse clientele, including transportation firms, municipalities, waste management companies, and educational institutions.

How much has Apollo invested in energy transition initiatives?

In the last five years, Apollo has invested approximately $40 billion into energy transition and sustainability-focused projects across multiple sectors.

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