NGPNGPWatt It Takes
with Shreya Dave
Shreya Dave is the CEO and Co-Founder of Via Separations. They’re trying a new approach to chemical separations, a family of industrial processes responsible for an astonishing 12 percent of yearly energy consumption in the United States, on par with all the energy used in gasoline powered cars and trucks in the U.S. every year.
In October 2022, NGP co-led a $70 million growth investment in Dandelion Energy, the leading tech-enabled geothermal installer in the Northeast with a mission to accelerate broad geothermal heat pump adoption with a customer-friendly, vertically integrated approach.
Heat pumps are widely considered the most cost-effective and technologically feasible method of reducing building sector emissions
Residential buildings consume 20% of U.S. energy. The vast majority of this energy is used for space heating, air conditioning and water heating. Most household heating today is supplied by fossil fuels. [1] The transition from fossil fuel-based space and water heating technologies to heat pumps is driving down emissions in this sector. Electrically powered ground source heat pumps (“GSHPs”) are the most thermodynamically efficient form of heating and are more than five times more efficient than fossil fuels at converting input energy to heat energy. [2] GSHPs reduce emissions by up to 80%, depending on the composition of the regional electrical grid. And, GSHPs have the lowest operating costs of all heating systems, including 50-80% lower annual operating costs than heating oil.
Dandelion is growing with customer demand
Dandelion tripled its commercial operations in 2022 and recently celebrated its 1,000th geothermal installation. This funding round will enable Dandelion to meet its growing pipeline of opportunities in the retrofit market and the new construction market, where installation is notably more efficient and less expensive. While growing its scale and scope of operations, Dandelion continues to prioritize quality installations and an excellent customer experience.
Dandelion’s vertically integrated, tech-enabled approach solves historical market challenges
Ground source heat pumps have a multi-hundred-billion-dollar potential addressable market based on NGP’s long-term unsubsidized technoeconomic analysis. Accelerated adoption requires lower upfront costs, as was the case with energy transition technologies like residential solar and electric vehicles. Similarly, ground source heat pumps benefit from long-term, low-cost financing and require a growing ecosystem of quality installers. Dandelion addresses all of these opportunities with a vertically integrated approach that streamlines a complicated purchase decision and multi-skill install.
Within its vertical integration, Dandelion is further differentiated by: a) proprietary design software, b) an efficient sales funnel that remotely qualifies customer leads, c) a strong brand that generates referrals and lowers customer acquisition costs, d) an innovative drilling suite that can drill faster, maneuver in more yards, and be less disruptive to homeowners, and e) a pipeline of innovation to lower system costs even further.
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[1] U.S. Energy Information Administration.
[2] Rewiring America, “Electrify Everything in Your Home,” 2021.
NGP is proud to partner with Dandelion Energy
Dandelion is led by a talented management team including CEO Michael Sachse, co-founder and President Kathy Hannun and CFO Forrest Baringer-Jones. The Dandelion team has a track record of building innovative companies at the intersection of clean energy, technology, consumer behavior and regulatory strategy.
“Increasingly, homeowners are looking for a reliable heating and cooling system that saves them money AND reduces reliance on fossil fuels,” says Maritza Liaw, Partner at NGP. “However, heat pump technologies, installers and financing options are unfamiliar to most customers. Dandelion manages the complete design, installation, financing and maintenance to deliver quality ground source heat pump heating and cooling solutions to its customers. We’re thrilled to be in business with Dandelion and to support the team as they continue to innovate to unlock more energy-efficient, sustainable and affordable HVAC solutions for customers.”
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Learn more about Dandelion Energy: https://dandelionenergy.com/
About NGP
NGP is a premier private equity firm that believes energy is essential to progress. Founded in 1988, NGP is moving energy forward by investing in innovation and empowering energy entrepreneurs in natural resources and energy transition. With $20 billion of cumulative equity commitments, we back portfolio companies focused on responsibly solving and securing the energy needs of today and leading the way to a cleaner, more reliable, more affordable energy future.
For more information, visit www.ngpenergy.com.
February 01, 2023 04:55 PM Eastern Standard Time
DALLAS–(BUSINESS WIRE)–Elk Range Royalties, LP (“Elk Range”) is pleased to announce it has closed an acquisition of Permian Basin mineral and royalty interests pursuant to a purchase and sale agreement (“PSA”) with Tower Rock Oil & Gas and its affiliates.
The PSA covers ~2,300 core net royalty acres (“NRAs”), over 2,600 gross producing horizontal wells and more than 6,000 remaining gross undeveloped locations distributed across the Delaware and Midland Basins. LTM cash flow on the acquired assets was ~$3.7mm and includes top operator exposure to Pioneer, Endeavor and Permian Resources. Elk Range funded the acquisition through a combination of its equity commitment from NGP Royalty Partners, L.P. and its credit facility with Texas Capital Bank.
Charlie Shufeldt, CEO of Elk Range, commented, “We are excited to acquire a core Permian Basin mineral and royalty package in a competitive market environment. This acquisition allows us to close out the Elk Range Royalties, LP commitment with an attractive acquisition that has a mix existing cash flow and future development.”
“We enjoyed working with the Elk Range team; they are consummate professionals. Our excitement about this divestiture is multi-faceted as we worked hard to put together a portfolio of first-rate assets. This partial exit provides generous distributions to our fund investors and fresh capital to deploy into high quality mineral investments in our new 4th fund,” commented Oscar Torres, CEO and co-founder of Tower Rock, in a statement.
With the closing of this transaction with Tower Rock, Elk Range has fully invested the capital committed to Elk Range Royalties, LP. The team has secured a new commitment from NGP Royalty Partners II, L.P. to Elk Range Royalties II, LP and will begin investing out of that partnership immediately.
Stubbeman, McRae, Sealy, Laughlin & Browder, Inc. served as legal counsel for Elk Range on the transaction. Rachel Reese and Associates served as legal counsel for Tower Rock on the transaction.
About Elk Range Royalties
Elk Range is led by Charlie Shufeldt (CEO), Clinton Koerth (Vice President of Land and Business Development), Jeff Stewart (Vice President of Engineering) and Ashleigh Bell (Director of Finance & Accounting). Elk Range manages a portfolio consisting of more than 39,000 NRAs with an interest in over 8,000 horizontal wells across the Permian, Uinta, Anadarko, Eagle Ford, Haynesville and DJ Basins under the Elk Range Royalties, Luxe Minerals, 89 Energy II Minerals and Land Run Minerals platforms.
For more information visit www.elkrange.com.
About Tower Rock
Tower Rock is a private oil and gas mineral and royalty acquisition company headquartered in Austin, Texas. Now in its 10th year, Tower Rock is in the early stages of raising and investing its 4th fund.
For more information visit www.towerrockoilandgas.com.
About NGP
NGP is a premier private equity firm that believes energy is essential to progress. Founded in 1988, NGP is moving energy forward by investing in innovation and empowering energy entrepreneurs in natural resources and energy transition. With $20 billion of cumulative equity commitments, we back portfolio companies focused on responsibly solving and securing the energy needs of today and leading the way to a cleaner, more reliable, more affordable energy future.
For more information, visit www.ngpenergy.com.
U.S. emissions fell during the height of the pandemic as people were stuck at home, but that changed as the pandemic eased. Many researchers, scientists and lawmakers argue that Americans need to reduce their use of fossil fuels much sooner than they may have planned. Miles O’Brien reports on an alternative for home heating that could reduce the use and costs of fossil fuels.