Apollo-managed funds have acquired a majority interest in Composite Advanced Technologies (CATEC), a provider of compressed natural gas (CNG), renewable natural gas (RNG) and hydrogen transportation and storage solutions in the US for an undisclosed sum.
Scott Browning, a partner at Apollo, said: “CATEC’s proprietary manufacturing capabilities are critical to supporting the growing market demand to reduce carbon emissions in ‘hard-to-decarbonise’ industries.
“The CATEC team has built an impressive business, which we believe can scale to become a one-stop-shop platform for serving the equipment needs of the compressed gas value chain through various expansion initiatives.”
Founded in 2014 and based in Houston, CATEC’s products and services help its customers transition away from carbon-intensive fossil fuels towards cleaner alternatives.
The Apollo funds intend to invest further capital in CATEC to help support expansion in the hydrogen transport and storage market.
CATEC’s co-founder Ryan Comerford, said: “It has been a privilege to help lead the team, and I’m confident new management, with the backing of Apollo funds, will position the company for further growth and success.”
Alberto Chiesara, co-founder and president of CATEC, said, “We are pleased to join forces with Apollo funds to help expand our capabilities and better support the growing adoption of low-carbon fuel solutions such as hydrogen, RNG and CNG.
“Apollo’s track record in energy transition investing, industry experience and significant resources make them an ideal partner for CATEC as we scale and embark on our next phase of growth.”
Last year, Apollo launched its sustainable investing platform, which targets to deploy $50bn (€45.4bn) in clean energy and climate capital by 2027.
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