Dealflow | January 3, 2024

Ara Partners takes a majority stake in USD Clean Fuels to expand green fuel infrastructure

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, Jan 3 — Ara Partners has acquired a majority stake in Houston-based USD Clean Fuels, which develops and manages terminals to transfer renewable diesel, ethanol, sustainable aviation fuel and other green fuels between trucks and trains.

Renewable natural gas and other biofuels, as alternatives to fossil fuels, are included in the climate plans of California and other states, but carry their own climate risks, including methane leaks.

As part of Ara’s purchase, USD Clean Fuels acquired the West Colton Rail Terminal, a biofuels terminal in California. Texas-based Ara raised $1.1 billion last fall for its second industrial decarbonization fund.

“We have high conviction that the green molecules economy — whether it’s renewable fuel feedstocks or biofuels — offer disproportionate opportunity for returns and impact,” said Ara’s George Yong.