Bain Is Close to Buying Stake in Biomass Firm EcoCeres, Sources Say

(Bloomberg) -- Bain Capital has made a significant equity investment in EcoCeres Inc., a biomass company majority owned by Hong Kong & China Gas Co., as the private equity firm seeks to boost its sustainable investing strategy.

Towngas, as the Hong Kong utility giant is known, remains as a strategic shareholder in EcoCeres, according to a statement on Thursday, which confirmed an earlier Bloomberg News report. The buyout firm didn’t provide financial details of the transaction. A deal could be worth a few hundred million dollars, people familiar with the matter have said.

“This investment is testimony to Bain Capital’s commitment to sustainable growth and reducing climate impact,” James Tam, a partner of Bain Capital Private Equity in Asia, said in the statement. “We embrace EcoCeres’ vision to build a global leader in decarbonization solutions much needed by the world to attain carbon neutrality.”

Towngas in 2021 set up EcoCeres, which focuses on developing technology that converts waste-based biomass into a wide range of biofuels, biochemicals and biomaterials, according to its website. Its main business includes a hydro-treated vegetable oil plant for converting inedible bio-grease feedstock into advanced biofuels in China’s Jiangsu province. Last year, private equity firm Kerogen Capital invested $108 million in EcoCeres and became a minority investor.

Founded in 1862, Towngas was the first public utility in the former British colony and now supplies gas to about 1.9 million accounts covering residential, commercial and industrial sectors, according to its website. The company expanded its business to mainland China in 1994. It now operates more than 550 projects across the country.

Shares of Towngas have gained about 3% this year, valuing the firm at around $18.3 billion.

Bain, based in Boston, counts about $160 billion in assets under management in areas including private and public equity, fixed income, credit, venture capital and real estate, its website shows.

(Updates with official statement throughout.)

More stories like this are available on bloomberg.com

©2023 Bloomberg L.P.