Ara Partners, HF Capital Launch Energy Decarbonization Initiative

Ara Partners, a private equity firm focused on industrial decarbonization, has joined forces with HF Capital to launch Ara Energy Decarbonization, a new initiative aimed at reducing carbon emissions from conventional energy assets across North America. HF Capital, the investment arm of the Haslam family, has committed up to $725 million to support this strategy, which seeks to acquire, optimize, and decarbonize energy businesses. Shameek Konar, the former CEO of Pilot Company, will lead Ara Energy Decarbonization. Konar, who has a wealth of experience in the energy sector from roles at Constellation Energy, Mercuria Energy, and Goldman Sachs, previously spearheaded efforts at Pilot to reduce carbon emissions, including selling over 1.5 billion gallons of renewable fuels in 2022. Konar emphasized that Ara's expertise in investment, operations, and decarbonization is well-suited to tackle the challenges of the carbon-intensive energy sector, which is under pressure as the world grapples with rising energy demands. Ara Energy Decarbonization will focus on projects that aim to lower carbon emissions at traditional energy assets, such as ethanol and natural gas power plants. With the energy sector contributing more than 75% of global greenhouse gas emissions, Ara aims to reduce emissions in industries like power generation and biofuels, especially as the demand for energy surges with the growth of data centers and AI technology. Founded in 2017, Ara Partners has raised over $3 billion in capital and focuses on investments in sectors like energy efficiency, green fuels, and food and agriculture. Co-founder Charles Cherington stated that although conventional energy sources remain necessary for the global energy transition, the firm’s goal is to decarbonize the most polluting sectors without disrupting energy output. This new strategy marks an important step for Ara as it continues to contribute to the global push toward net-zero carbon emissions.