Evolve has recently made a $600 million investment in the construction of a HOBO renewable fuels facility. The project is expected to produce more than 120 million gallons of renewable fuels per year.
Based in Houston, Texas, Evolve Transition Infrastructure LP, is a publicly traded limited partnership focused on the acquisition, development and ownership of infrastructure that can be critical to the transition of energy supply to lower carbon sources. They own natural gas gathering systems, pipelines, and processing facilities in South Texas and continue to pursue energy transition infrastructure opportunities.
Their partner in this particular venture is HOBO Renewable Diesel, LLC, a renewable fuel project developer. The company converts agricultural feedstocks into renewable fuels such as renewable diesel and sustainable aviation fuel. HOBO is led by energy professionals who have demonstrated expertise across project development, engineering, operations, and financing, and the organization has partnered with a team of technology and engineering/construction companies as well as other advisors.
Evolve will exclusively fund the development and construction of the Fuels Project and future renewable fuels projects that can produce renewable diesel and sustainable aviation fuel and contribute to the advancement of the transition to a low-carbon world. This agreement is subject to the satisfaction of certain conditions, which include HOBO securing a long-term strategic offtake agreement for the Fuels Project
Moreover, HOBO and Evolve are exploring the possibilities of incorporating other carbon reduction opportunities into the Fuels Project and future projects which the management teams believe could result in the production of some of the lowest carbon intensity fuels in the US.
With the big investment in the project comes some personnel moves too. In furtherance of the Fuels Project and to support Evolve’s energy transaction focus, key members of the HOBO leadership team will join Evolve’s management team effective December 1st, 2021.
“We believe the initial and future HOBO projects are extremely attractive opportunities to execute on our previously announced business strategy shift to focus on the acquisition and development of infrastructure critical to the transition of energy supply to lower carbon sources. Randy, Mike and Jonathan are proven leaders and their skill sets and experience will be tremendous complements to our existing team,” said Chuck Ward, Chief Financial Officer of Evolve.