Suburban Propane Partners LP of Whippany announced March 10 it purchased a 25% equity stake in gaseous hydrogen solutions supplier Independence Hydrogen Inc. for $30 million.
The company also announced it created a new subsidiary, Suburban Renewable Energy LLC, as part of its long-term goal of building out a renewable energy platform.
The purchase aligns with Suburban Propane’s commitment to invest in “innovative solutions to support the economy-wide transition to a sustainable energy future, while also advancing the clean energy benefits of propane to support the transition.”
Independence Hydrogen is a veteran-owned and -operated, privately held company based in Ashburn, Va., that develops a gaseous hydrogen ecosystem to deliver locally sourced hydrogen to local markets. Its mission is “to make communities cleaner, safer and more energy resilient by providing a reliable supply of affordable hydrogen with an end-to-end carbon intensity score.”
“We believe in the role that hydrogen will play in the move toward decarbonization across many sectors of the economy. In line with our commitment to the military veterans’ community through our SuburbanCares corporate pillar, we are extremely excited to partner with the team at Independence Hydrogen to help them achieve their vision and mission of localized hydrogen production and distribution,” said Michael Stivala, Suburban Propane president and CEO, said in a statement.
Suburban Propane’s formation of a the wholly owned subsidiary Suburban Renewable Energy will serve as the platform for its investments in renewable energy technologies and businesses.
In addition to the investment in Independence Hydrogen, Suburban Renewables will also hold the partnership’s 39% equity stake in Oberon Fuels, acquired in September 2020. Oberon is a developer and producer of renewable dimethyl ether, which, when blended with propane, can significantly reduce emissions and carbon intensity.