Blackstone Energy Partners will invest $400 million to lead a strategic investment in Xpansiv, a global marketplace for ESG-inclusive commodities. The news was announced by Blackstone on July 6, 2022.
Xpansiv brings together buyers and sellers of environmental commodities and offers market insights for voluntary carbon offsets, renewable energy credits, and low-carbon fuels, which are all key elements of the global goal towards decarbonization. The company’s growing ecosystem serves businesses looking to meet their environmental and emission reduction targets.
The partnership with Blackstone “will help us solidify our leading position in carbon and leverage our platform to scale markets and products to accelerate the energy transition across renewable energy, digital fuels, and beyond,” said Xpansiv CEO Joe Madden.
Blackstone Energy Partners, the private equity business of Blackstone that focuses on energy, has invested more than $20 billion of equity across the globe in various projects within the energy industry, thus generating investor value, creating new jobs and building larger-scale enterprises. The company puts focus on supporting management teams with flexible capital to offer solutions that improve company performance and deliver reliable and affordable energy.
“We believe environmental commodities are a critical new asset class that must scale exponentially to meet climate change mitigation targets pledged by governments, companies, and entire industries,” said Bilal Khan, Senior Managing Director at Blackstone. “Xpansiv is a leader in this space, and we are delighted to provide the capital and resources to help them further expand their offerings and accelerate their growth.”
The investment will allow Xpansiv to continue growing in terms of both organic initiatives and acquisitions. Previously, Blackstone has invested in similar spaces that offer solutions to the climate crisis, such as Legence and Sphera.