Published by Todd Bush on May 6, 2025
Ara Partners recently raised an \$800 million infrastructure fund focused on reducing carbon emissions in industrial sectors, which historically have been hard to decarbonize.
Plenty of startups hit a wall after their first few rounds of funding, having grown too big for venture funds but still in need of cash. For startups specializing in industrial-scale hardware, which includes many climate tech companies, the problem is especially acute because the capital requirements are so large.
>> In Other News: Air Products to Showcase Decarbonization Solutions for Iron and Steel Production at AISTech2025
Infrastructure funds have long filled that gap, but many have been hesitant to dive into climate tech.
One firm thinks that spells opportunity, though. Ara Partners recently raised an \$800 million infrastructure fund focused on reducing carbon emissions in industrial sectors, which historically have been hard to decarbonize.
Ara had initially targeted \$500 million, the firm told TechCrunch, but saw strong support from new and existing investors, including pension funds, insurance companies, endowments, foundations, and sovereign wealth funds from around the world.
The new fund has already made three investments, including in an Ireland-based household organic waste recycler and a biofuels terminal developer. The fund’s decarbonization strategy focuses on repurposing existing assets for new low-carbon developments.
This significant fundraise arrives at a time of political uncertainty over decarbonization in the U.S. but increasing clarity around its economics. Many companies have been able to drive down costs of low- and zero-carbon technologies in recent years, making them cost competitive with existing approaches.
Ara, for example, previously invested in Divert through one of its private equity funds. The company donates food that’s still good and, for food that isn’t edible, turns the waste into biogas that can be sold or used to generate electricity and heat on-site. Compared with the alternative — sending the waste to a landfill where it generates methane pollution — Divert’s approach makes a lot of sense environmentally and financially.
The investment firm said it will announce its fourth investment under the strategy “shortly.”
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 💸 EDF Slams Repeal of 45V Hydrogen Credit, Citing $32Bn in Higher Household Energy Costs and Job Losses 🤝 Johnson Matthey to Sell Blue Hydrogen Business to Honeywell as Part of £...
Inside This Issue 🏗️ Infinium Breaks Ground on World’s Largest efuels Plant Near Pecos 🛣️ Verde and C-Twelve Forge 10-Year Exclusive Partnership to Redefine the Roads of the Future 🌱 Inauguration ...
Inside This Issue ✈️ FedEx Takes Delivery of Sustainable Aviation Fuel (SAF) from Neste at LAX 📊 General Index & ATOBA Energy Announce SAF Pricing Partnership 💶 EU Awards Nearly €1B to 15 Gree...
EPA Moves to Eliminate Federal Greenhouse Gas Limits on Fossil Fuel Power Plants
Regulatory reversal: The EPA plans to scrap federal limits on GHG emissions from coal and gas-fired power plants, marking a significant rollback of climate-related regulations. Contradicts global ...
Scientists Find Massive Hydrogen Reserves Deep Beneath Earth’s Mountains
Ancient hydrogen trapped beneath Earth’s mountains could unlock a powerful new frontier in clean energy. A new study published in Science Advances has revealed the discovery of vast natural hydrog...
Building New Markets to Advance Sustainability
Meeting the urgency of the climate crisis demands bold ambition and collective action. At Microsoft, we are committed to becoming carbon negative by 2030—a goal that calls for ingenuity and innovat...
Science-based criteria for high-quality environmental attribute certificates (EAC) procurement in low-carbon concrete and steel address supply chain emissions and catalyze market transformation. K...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.