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