Core Sector
Focus
ArcLight pursues investments principally in power, renewables, strategic gas, transformative and opportunistic infrastructure, which we refer to as our Core Sectors.
These Core Sectors constitute the key areas of ArcLight’s investment focus since the firm’s inception in 2001. We believe these Core Sectors represent the key enablers of today’s electrification, data center, and energy transition investment mega-trends. Within these sectors, ArcLight has a systematic focus on opportunities in the middle market where we believe we have competitive advantages in sourcing operational management, driving value creation initiatives, financing, and monetizing assets.
Power Infrastructure
Lower carbon electric power generation, grid, and transmission-related assets.
Since 2001, our Funds have invested over $6 billion in 47 power infrastructure investments representing over 60 gross GW of power. Our Funds collectively own one of the largest non-utility power generation infrastructure portfolios in the U.S.
We agree with industry experts and stakeholders who project that electrification and data center power requirements will drive significant growth in power demand over the coming decades, requiring substantial investment across low carbon power and related transmission, distribution, and grid infrastructure. This demand growth will be coupled with continued retirements of legacy high-carbon power plants and growing penetration by non-dispatchable renewable resources, which we expect to further tighten power markets and reward the dispatch and reliability services that power infrastructure provides.
We believe the power sector today is the most relevant it’s been in over two decades. As one of the pioneering investors in the sector with an extensive track record and a suite of specialist resources, we believe we are well positioned to identify opportunity and deliver value-added partnership and strong operational outcomes in this critical infrastructure segment.
Renewable Infrastructure
Wind, solar, hydroelectric and related energy storage.
Since 2001, our Funds have invested approximately $5 billion in 12 renewable infrastructure platforms across wind, solar, geothermal, and hydroelectric facilities, representing over approximately $10 billion. We have helped build and manage some of the leading renewables platforms and assets in the sector including Alta Wind Energy Center, the largest wind facility1 constructed in the U.S., and Great River Hydro, the largest hydroelectric platform2 in New England. Today, ArcLight Funds are developing wind re-powering, solar capacity, and BESS deployments across their investments.
Given the significant growth in renewables over the last decade, which we expect to accelerate over the coming decade, ArcLight believes that the growing and maturing fleet of operating renewable resources will require active ownership and hands-on value management resources to sustain renewable output, to re-power high-value incumbent renewable resources, and to tactically execute expansion and new development opportunities.
Strategic Gas Infrastructure
Transmission, storage, and export, including natural gas, LNG, CO2 and hydrogen.
Since 2001, our Funds have invested over $6 billion in strategic gas infrastructure across 16 different strategic platforms. We believe we were early to recognize the critical and long-term role that U.S.-produced natural gas plays in the global economy and the importance of enabling infrastructure.
Our Funds have made multiple investments into the natural gas storage segment, supporting both dispatchable power and LNG export; our Funds invested to build the largest natural gas export pipeline3 to Mexico; and today, our Funds own an interest in Natural Gas Pipeline Company of America, the third largest interstate pipeline4 system in the United States and a key transporter of natural gas to large LNG export.
Our Funds’ investment in strategic gas infrastructure has been highly complementary to their participation in the power infrastructure and renewables markets, given the critical role that we believe natural gas has played and will continue to play in decarbonizing the power sector and supporting the growth of intermittent, non dispatchable renewable resources and new data center infrastructure.
Today, this infrastructure facilitates low carbon power generation, enables the buildout of data centers, and supports renewable power development. Tomorrow, we believe this infrastructure will be used to store and transport the lower carbon fuels of the future such as renewable natural gas, hydrogen, and captured carbon.
Transformative Infrastructure
Battery electric storage, data center power solutions, and grid edge applications.
ArcLight has been active in leveraging our power and renewable infrastructure experience to be an early mover in providing real asset and infrastructure solutions to transformative infrastructure opportunities, including battery storage and electrified transport solutions.
We believe that our ability to continue to anticipate and take advantage of changes in the energy industry, including the passage of the Inflation Reduction Act, is a direct result of our institutional approach and the depth of our experience in critical infrastructure markets. Our focus in the segment is on the disciplined deployment of capital, centered on technologically established infrastructure supported by long-term contracts with a preference for co-location with existing infrastructure assets or where we otherwise have sustainable competitive advantages.
Opportunistic Infrastructure
Opportunistic investments related to infrastructure and ArcLight’s historical investment experience.
Drawing on our extensive industry network, our industry resources, and our historical investment and operational experience, our Funds selectively acquire and manage energy infrastructure assets in what we believe is a responsible manner. Through our portfolio companies, we have developed extensive experience in repurposing and repositioning fossil fuel-related midstream assets to support their role in a market that is continually evolving and transitioning.
In today’s market we see deep value opportunity within certain traditional energy infrastructure asset segments. We employ a highly selective approach to these assets, focusing on long-term contracts, rigorous underwriting standards, and resiliency to macro and policy risks. A key area of focus in the segment is the offshore infrastructure segment, where our Funds have successfully invested over $3 billion since inception.
¹ As of October 2024
² As of June 2024
³ As of August 2018
⁴ As of December 2024
