VoltaGrid LLC and Pilot Company entered into and closed a definitive agreement for VoltaGrid to acquire substantially all assets of Pilot’s CNG compression, CNG mobile pipeline and CNG logistics platform. Through the acquisition, VoltaGrid will become the largest vertically integrated portable power generation and clean fuels platform in North America. The combined platform will provide a reliable and cost-effective solution to advance electric completions, remote mining decarbonization, utility grid reinforcements and hydrogen blending partnerships. The company expects to significantly increase its footprint across the USA by developing a low carbon fuels network to decarbonize key oil & gas basins, active industrial regions, carbon intensive mining operations and the transportation market.
The acquisition builds off a well-developed relationship that the two companies formed in 2020 in conjunction with Pilot’s investment in VoltaGrid’s low carbon power generation platform. The strength of the vertically integrated platform will significantly increase the overall asset base of VoltaGrid by creating a market leading:
- 870,000 diesel gallons equivalent per day of CNG Production Capacity by Q2 2023.
- Over 160 committed CNG trailers dedicated to electric completions, dual fuel and water heating operations by Q2 2023.
- Over 50,000 mcf per day of field gas processing and compression enabling a seamless transition between CNG and field gas for electrification.
- A large-scale investment in a CNG & hydrogen blending terminal in Arizona dedicated to remote mining, construction and grid electrification projects in the region.
“Pilot is excited to continue to support the VoltaGrid platform and remains a dedicated shareholder as the company embarks on its decarbonization efforts across North America. We believe the combined entity will gain from capital efficiencies and synergies that will benefit our team members, stakeholders and customers,” said Pilot Company Vice President of Business Development and Strategy John Tully.
Key focus drivers for customer value generation:
- VoltaGrid’s power generation customers can now access a reliable network of CNG, biomethane and hydrogen fuel supply as part of a turnkey package offering paired with power generation.
- Significant cost efficiencies by cross utilizing resources between power generation and fuel deliveries.
- Seamless transitions available between field gas and CNG supply for electric power generation without having to manage multiple suppliers.
- VoltaGrid utility customers gain access to a dedicated fueling infrastructure base to efficiently supply low carbon fuels for grid reinforcement projects.
- Allows VoltaGrid to maximize capital efficiencies enabling an expedited build-out of the necessary infrastructure.
Source: VoltaGrid
