EnCap Investments creates first fund for clean energy projects

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May 4, 2021Updated: May 4, 2021 11:09 a.m.

Workers install new utility-scale batteries at the new Broad Reach Power in Odessa. Broad Reach, which is based in Houston, was one of five companies to receive investments from EnCap Investments’ first energy transition fund.

Broad Reach / Broad Reach

EnCap Investments said Tuesday it has secured $1.2 billion to create an energy transition fund to bankroll renewable-energy and energy-tech start-ups and projects.

EnCap Energy Transition Fund I will focus on creating wind, solar and energy-storage projects. It has already sent capital to five businesses: Broad Reach Power, an energy-storage company; Catalyze, which helps integrate renewable energy technologies into new and existing buildings; Jupiter Power, an energy-storage company; SolarProponent, a tutility-scale solar business; and Triple Oak Power, a wind-energy company.

In a statement, EnCap Energy Transition Managing Partner Jim Hughes said the investments will help support the transition of the power grid to more renewable sources.

“We have attracted the best talent in the wind, solar and energy storage markets, and each of our companies is ahead of its value-creation plan,” he said.

EnCap’s new fund is its first foray into investing in low-carbon energy. The Houston venture capital firm, established in 1988, has traditionally focused more on upstream and midstream oil-and-gas companies. In upstream alone, the firm invested $22 billion in more than 240 companies.