ALBUQUERQUE, NM—January 5, 2021—BayoTech, Inc. (“BayoTech”), a global leader in on-site hydrogen production, today announced it has received an equity investment of up to $157 million from Newlight Partners LP (“Newlight”), a growth equity investor, with participation from existing investors Cottonwood Technology Funds, Sun Mountain Capital and new investor Fortistar. The proceeds will be used to accelerate BayoTech’s strategic growth through product development, project development and infrastructure expansion.
BayoTech is an energy solutions company committed to addressing the global need for consistent, cost-effective, low-carbon supply of hydrogen. Hydrogen possesses many attributes that will drive long‐term demand as a fuel source, including its role in global decarbonization efforts. Today, most hydrogen is produced at large, centralized facilities before being delivered to end users. BayoTech, through its on-site hydrogen generators and “Gas-as-a-Service” offering, reduces or eliminates transportation and storage costs, which result in less energy wasted and a lower carbon footprint than traditional hydrogen production technology and electrolyzer-based systems. The company’s modular, scalable, and rapidly deployable hydrogen production systems require lower upfront capital commitments, streamlined siting and installation and, when paired with renewable natural gas (“RNG”), offer the most cost-effective green hydrogen available today.
BayoTech’s hydrogen generation systems produce local hydrogen close to the application. This saves customers money and reduces the carbon intensity associated with the legacy challenges of liquifying and transporting hydrogen. This allows BayoTech to serve a diverse set of end users, including traditional consumers in the industrial gas and chemicals industries, as well as those using hydrogen to power the fast-growing fuel cell segment.
“This is an exciting day in our company’s evolution. This investment will enable BayoTech to drive commercial growth aggressively so that consumers around the world can have access to low cost, low/zero-carbon hydrogen today,” said Mo Vargas, BayoTech’s President & Chief Executive Officer. “Having previously worked with Newlight, I have experienced firsthand the strategic resources and value they bring to their partners as well as their team’s ability to understand and invest in new markets. We have a shared vision of where we want BayoTech to go and the tremendous opportunity that the company has in the hydrogen sector. We also welcome Fortistar, who has experience building almost 400 fueling stations and are in the middle of a $400 million capital investment program to produce over 100 million gas gallon equivalents of RNG, which will accelerate the deployment of BayoTech generation sites. We are very appreciative of the continued support from Cottonwood and Sun Mountain as well. They have been amazing partners over BayoTech's 5-year journey.”
“Advances in fuel cell technology are driving demand for hydrogen in emerging applications, including in the materials handling, mobility and power sectors, where demand tends to be more distributed. BayoTech’s innovative approach to on-site hydrogen generation ensures that these end users, who are not well‐served by the incumbent industrial gas players, are able to get on-demand hydrogen at a competitive price,” said Mark Longstreth, Partner at Newlight. “We are proud to be partnering alongside Mo and his talented team at BayoTech to support the company’s growth and bolster its position as a leading provider of sustainable and cost-effective hydrogen solutions as the global energy sector transitions to a less carbon-intensive future.”
Wendy Rollstin, BayoTech’s Chief Financial Officer, added, “The new capital follows a year of significant growth for BayoTech, which announced agreements for hydrogen development projects with HYZON Motors, IGas Energy, Nutrien, and others, as well as filing four new patents in 2020. This investment will enable BayoTech to enhance our commercialization efforts, expand our product offerings to meet the needs of our customers seeking to promote their sustainability goals, and continue to innovate.”
About BayoTech
BayoTech is a hydrogen generation technology company offering hydrogen production solutions through rentals, leases, sales and gas-as-as-service to customers worldwide. Headquartered and produced in New Mexico, USA, BayoTech’s on-site hydrogen generators are more efficient than legacy steam methane reformers, leading to lower carbon emissions and low-cost hydrogen. Visit www.bayotech.us for more information.
About Newlight Partners LP
Newlight Partners LP is a growth equity firm focused on building businesses in partnership with founders and exceptional management teams. For more than 15 years, the Newlight team has helped build successful enterprises in five sectors, including telecommunications, financial services, power & infrastructure, healthcare and business services. Led by David Wassong and Ravi Yadav, the Newlight team has invested approximately $6 billion in over 100 investments since 2005, first as the Strategic Investments Group at Soros Fund Management LLC (Soros), and now as Newlight after the team's spin out from Soros in 2018. Newlight has approximately $4 billion in capital commitments and assets under management.
About Cottonwood Technology Fund
CTF is a seed and early-stage technology commercialization fund with offices in Santa Fe, New Mexico; and Enschede, the Netherlands. It invests in founding stage technology-related (particularly telecom, chemistry/material sciences, photonics, biosciences, robotics and new energy) businesses originating throughout the Southwest region of the US and also in Northern Europe. Visit www.cottonwoodtechnologyfund.com for more information.
About Sun Mountain Capital
SMC is based in Santa Fe, New Mexico and is a diversified private equity firm with investment strategies in both direct and fund of funds programs spanning venture capital, mezzanine debt and growth equity. Visit https://sunmountaincapital.com for more information.
About Fortistar
Founded in 1993, Fortistar is a privately-owned investment firm that provides capital to build, grow and manage companies that address complex sustainability challenges. Fortistar utilizes its capital, flexibility and operating expertise to grow high-performing companies, first in power generation and now in mobility, carbon capture, the circular economy and other solutions that drive our transition to a zero-carbon future. As a team, Fortistar has financed over $3.5 billion in capital for companies and projects in the energy, transportation and industrial sectors. For more information about Fortistar or its portfolio companies, please visit: www.Fortistar.com and follow the company on LinkedIn.
Contact:
Jeff Mitchell, Director of Sales Operations -- (203) 214-7106 -- Email: jeff.mitchell@bayotech.us
For Newlight Partners: Jonathan Gasthalter/Nathaniel Garnick -- Gasthalter & Co. -- (212) 257-4170