Mar 11, 2022 - Economy & Business

Private equity firm invests in hog manure-to-energy producer

An $100 with a pig in the middle

Illustration: Eniola Odetunde/Axios

TPG Rise invested in Monarch Bioenergy, a St. Louis-based renewable natural gas producer formed in 2018 by pork processor Smithfield Foods.

Why it matters: This is an effort to combat (and monetize) the immense amount of carbon emissions produced by animal farming, and also to cut down on the use of inorganic fertilizers.

Details: TPG will own a one-third stake in the business, with Smithfield and partner Roeslein Alternative Energy each also owning one-third. No financial terms were disclosed.

The bottom line: Monarch's long-term goal is to create a closed-loop system whereby it converts methane and prairie grasses into natural gas, and then uses that natural gas as both prairie fertilizer and feedstock.

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