Reg Menhas, co-founder and CEO of Lapis Carbon Solutions [Photo: Lapis Carbon Solutions]
Dallas-based Lapis Carbon Solutions—a partner for energy-intensive industries wanting to achieve their carbon goals through the delivery of carbon capture, utilization, and storage (CCUS) projects—has received its second investment from Dallas-based investment firm Cresta Fund Management,
Cresta, which invests in low-carbon molecule infrastructure and solutions, made the investment through its recently launched Cresta Sustainable Fund II (Sust. Fund II).
Financial details of the investment were not disclosed.
“We’re excited to deepen our partnership with Cresta as we enter our next phase of growth,” Lapis CEO and co-founder Reg Manhas said in a statement. “Their continued support will help us accelerate our expansion. With utilization and sequestration strategies working in parallel, Lapis is well positioned to develop customized decarbonization solutions more quickly for emitters.”
Cresta said the investment reflects its continued conviction in Lapis’ leadership and strategy to develop bespoke CCUS solutions for high-intensity emission sources. Cresta said the new funds, alongside co-investment from other sources, is expected to accelerate the development of Lapis’ anchor projects and expand the broader pipeline of project opportunities, including the expansion into carbon dioxide (CO2) utilization.
“This investment reflects our belief in Lapis’ ability to lead the way in carbon capture, sequestration and utilization,” Cresta Managing Partner Chris Rozzell said in a statement. “Private equity has a critical role to play in enabling decarbonization at scale, and we are proud to support Lapis as they build the infrastructure necessary for a lower-carbon future.”
Support for carbon management
Cresta made its initial investment in Lapis in late 2021, and today, Lapis is scaling into one of North America’s leading carbon management providers, the companies said. Lapis provides industrial emitters with build-to-suit sequestration and utilization solutions, allowing customers to maximize value for CO2 waste.
Cresta said the recent passage of the U.S. budget reconciliation bill reaffirmed the 45Q Carbon Sequestration Tax Credit, the spotlights continued bipartisan support for carbon management. The durable incentive further strengthens the economic case for building critical CCUS infrastructure and underpins Cresta’s investment thesis, the firm said.
This investment marks one of the first major investments from Cresta’s Sustainable Fund II, following its investment in Ocean Pacific last year, the firm said. In addition to growth capital, Cresta said it brings strategic guidance and operational expertise to support Lapis’ execution, infrastructure development, and commercial partnerships.
Cresta Fund Management has roughly $1.6 billion of assets under management.
Founded in 2020, Lapis says it is actively building a world-class portfolio of CCUS projects within North America.
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