Suburban Propane Partners, L.P., a natural gas and electricity marketer, has recently purchased a 25% equity stake for $30 million in Independence Hydrogen, Inc., a gaseous hydrogen solutions supplier.
As a part of the partnership, Suburban Renewable Energy, LLC, a new subsidiary, will be created, which is in line with its long-term strategic target of developing a renewable energy platform.
Independence Hydrogen has been emphasizing the delivery of locally sourced hydrogen to the local markets, with an initial focus on backup power and material handling applications. Through its affordable hydrogen with an end-to-end CI (carbon intensity) score, the company is on the mission to make communities safe, cleaner, and energy resilient.
To support the transition to a sustainable future, Suburban Propane is targeted at fostering and investing in novel solutions to advance the clean energy benefits. Hydrogen is considered a critical energy source that can decarbonize transportation, material handling, and heavy industry sectors.
Suburban Propane’s Chief Executive Officer and President, Michael Stivala, the company is aware of the crucial role of hydrogen in decarbonizing several sectors of the economy. It is thrilled to partner with the Independence Hydrogen team to assist them in achieving the vision and mission of hydrogen distribution and production.
The partnership is in line with the company’s commitment to the community of military veterans through the SuburbanCares corporate pillar, Mr. Stivala added. Its recent stake purchase also demonstrates the ongoing commitment to help society transition to a clean energy future.
Suburban Renewable Energy, a new wholly-owned subsidiary of Suburban Propane, will operate as the platform for investments in renewable energy technologies and businesses. Following the parent company’s investment in Independence Hydrogen, it will also hold a 39% equity stake in a renewable dimethyl ether producer and developer, Oberon Fuels, which was acquired in September 2020.