The Opportunity

We were investigating opportunities to get more value out of western Canada’s natural gas industry and believed there was an opportunity in the market to displace diesel fuel with natural gas. This arbitraging of the BTU value of natural gas and diesel could be realized either by converting natural gas to diesel or by leveraging dual fuel engine technology, which would allow diesel engines to switch between the two. By delivering compressed natural gas (CNG) to dual fuel capable engine fleets, Certarus is a capital-efficient way of realizing higher value for natural gas, with the benefit of being on wheels.

The Challenge

The quality of governance and management at Certarus is exceptional, making this a passive investment.

The Financial Transaction

The quality of governance and management at Certarus is exceptional, making this a passive investment.

The Deal Drivers

  • Business surrounded by great people.
  • Market was clearly adopting CNG as an alternative fuel source and Certarus was well past the proof of concept phase.
  • Believe the $/BTU arbitrage between natural gas and diesel is a long-term trend, that also has significant environmental benefits.

The Results

Company CAGR since investment has been approximately 50%.