This week, private equity firm JOG Capital, the dual U.S.-Canadian firm that has managed more than $1.3 billion in energy investments across a 14-year track record as an oil and gas-focused fund, announced a corporate “180,” so to speak. The firm is rebranding itself as Carbon Infrastructure Partners (CIP), and has announced a new focus and investment mandate. Henceforth, the firm will invest solely in carbon capture and storage infrastructure.
In doing so, Carbon Infrastructure Partners becomes one of the first investment firms to devote its resources to the dual challenge of meeting global energy demand for 7.7 billion people while rapidly reducing carbon emissions. CIP believes the solutions to these challenges lie in understanding and investing in the entire carbon lifecycle; from hydrocarbon-based energy production through to carbon capture, utilization, and storage back into the subsurface.
Paradigm shift
Carbon Capture and Storage (CCS), an existing process and technology that reduces CO2 emissions, is widely recognized as one necessary approach to help achieve economy-wide emission reductions. CIP says that the business and investment opportunity for CCS is experiencing regulatory tailwinds and bipartisan support both in the U.S. and Canada.
In the U.S., the firm notes, this represents a paradigm shift, with the government prepared to subsidize carbon capture and storage to incentivize and encourage net zero commitments. CIP sees this as “version 2.0 of viable, actionable, and tax-advantaged climate solutions.” Combined with additional policy incentives, growing demand for high-quality voluntary carbon offset credits will (in their view) support the business model for carbon removal assets that directly remove CO2 from the atmosphere.
“As established oil and gas investment professionals, we understand the full lifecycle of carbon and we seek to be market leaders on climate-driven carbon management to meet global energy demands while rapidly reducing carbon emissions,” said Craig Golinowski, President and Managing Partner of CIP.
“We recognize the tremendous efforts and advancements being made by the wind, solar, and electric vehicle industries and are proud that CCS will further enable deep electrification of the economy. By combining our oil and gas technical skills with strong policy incentives for CCS, verified carbon accounting, and market demand for net-zero solutions, we seek investments that address the underweight energy and real assets issue currently faced by institutional investors.”
CIP believes its differentiation and value-add lies in its extensive network and the niche skillset required to fundamentally transform the world’s carbon-based energy system — which dovetails closely with their experience and expertise as veteran oil and gas industry professionals.
Additionally members of the CIP team have knowledge and insight through ownership and board representation in the Weyburn carbon capture and storage project in Saskatchewan, Canada, providing the firm with demonstrable insight into the challenges and opportunities in owning and operating CCS assets.
CIP is to be led by two Managing Partners, Craig Golinowski, President & Managing Partner, and Ryan Crawford, Managing Partner, along with Kel Johnston, Managing Director, and David Moyes, Partner.
Golinowski and Crawford together have 40 years’ combined experience in oil and gas investing and private equity fund management, having directly managed $936 million of energy private equity fund capital across 18 distinct platform investments. Besides broad exposure to direct oil and gas operations and governance roles in large, complex, multi-faceted projects, they are also familiar with the intricacies of ESG planning, execution, and monitoring.
In addition to a deep bench of energy investment talent, CIP will bring aboard senior technical advisers from across the academic, finance, and Canadian government spheres.
