Streamline Innovations Raises Growth Capital to Fund Expansion and Meet Rising Demand for Emissions Solutions

Rhea-AI Summary

Streamline Innovations has successfully raised growth capital through an equity round led by Kayne Anderson Energy Infrastructure Fund (KYN) and Kayne Anderson NextGen Energy & Infrastructure (KMF). Proceeds will expand the lease fleet of its Valkyrie™ hydrogen sulfide treatment plants, enhancing offerings in Renewable Natural Gas and Carbon Capture markets. Additionally, Streamline secured an upsized Term Loan recognized as green financing by Sustainable Fitch, affirming its commitment to environmentally friendly solutions. This funding aims to meet growing demand and reduce delivery times for its technology.

Positive

• Raised growth capital through an equity round led by KYN and KMF.
• Proceeds will expand Valkyrie™ fleet, addressing demand in RNG and CCUS markets.
• Term Loan recognized as green financing by Sustainable Fitch.
• Valkyrie™ technology enhances operational performance and ESG outcomes.

Negative

• None.

• Proceeds will be used to fund the expansion of Streamline’s lease fleet of Valkyrie™ hydrogen sulfide (H₂S) treatment plants, creating inventory to accelerate the deployment of new units, and broaden Streamline’s technology offerings in the Renewable Natural Gas (RNG) and Carbon Capture Utilization and Storage (CCUS) markets
• Series C equity round led by Kayne Anderson Capital Advisors
• Existing Term Loan with Riverstone Credit Partners upsized and recognized as a green financing by Sustainable Fitch
• Streamline’s Valkyrie™ technology helps customers improve operational performance and profitability while also providing a more environmentally forward solution to help achieve better environmental outcomes and overall ESG scores

SAN ANTONIO--(BUSINESS WIRE)-- Streamline Innovations, Inc. (“Streamline”), the leader in green solutions for treating hydrogen sulfide (H₂S) and other toxic emissions, has raised new growth capital via an equity raise led by Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) and Kayne Anderson NextGen Energy & Infrastructure, Inc. (NYSE: KMF), which are closed-end funds managed by Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”), and an upsize of its Term Loan from Riverstone Credit Partners LLC, a dedicated credit investment platform focused on energy, power, decarbonization, and infrastructure managed by Riverstone Holdings LLC (“Riverstone”). Riverstone also participated in the equity raise. Proceeds will be used to construct additional Valkyrie™ plants to expand Streamline’s fleet across multiple sectors and geographies.

Sustainable Fitch, a division of Fitch Group focused on ESG, recently recognized the Term Loan as a Green Loan aligned with the four pillars of the LSTA Green Loan Principles and the LSTA category of pollution and prevention. This ESG rating validates Streamline’s green technology as a solution for helping industry move forward to a sustainable and clean future.

Streamline’s patented, biodegradable chemistry and processes convert toxic H₂S into elemental sulfur, which can be cleanly disposed of or used in agricultural purposes, such as fertilizer. Many alternative treatment solutions result in hazardous or toxic byproducts that require special handling. In addition, Streamline’s chemistry is regenerative, so it can be reused hundreds of times versus toxic alternatives, reducing its footprint and the consumption of raw materials relative to other alternatives.

“We are thrilled to partner with Kayne Anderson and strengthen our relationship with Riverstone with this growth capital financing,” said David Sisk, Co-Founder and CEO. “The new funds will be put to immediate use to expand our lease fleet. More Valkyrie units will help us meet growing demand for our environmental solutions for H₂S and be more responsive to the market by substantially reducing delivery times for our units. Also, we will use this capital to further penetrate and aggressively grow our presence in the energy transition markets, including RNG, LNG, renewable fuels and CCUS.”

Ron Logan, Senior Managing Director and Portfolio Manager at Kayne Anderson, said, “We have been impressed by Streamline’s green solutions for solving a persistent and pervasive problem faced by multiple industries worldwide. We invested in Streamline recognizing its growth potential and are excited to contribute our capital and experience to help scale the business.”

Chris Abbate, a Partner at Riverstone, said, “We are pleased to increase our commitment to Streamline and help them expand their Valkyrie fleet. Their green solutions are exactly what the industry needs to improve environmental performance, reduce emissions and achieve overall sustainability goals.”

Citigroup served as exclusive placement agent for the equity raise.

About Streamline Innovations
Streamline Innovations' vision is Eliminating Emissions Through Technology. We help heavy industry around the world achieve environmental performance objectives, improve sustainability, and transition to a sustainable, low-carbon economy.

Streamline’s environmentally forward H₂S treating solutions help our customers achieve the “E” in ESG. H₂S is present in many industrial processes throughout the world, and our technology can be applied across industries, delivering a sustainable solution that eliminates H₂S, a leading cause of human inhalation accidents, corrosion and SO₂ emissions, a primary cause of acid rain.

We also believe that achieving climate-improving directives requires data. Creating intelligent systems that operate effectively and efficiently without human intervention is critical to measuring and reducing emissions that harm the environment. We integrate advanced process control, data collection and analytics in our technologies to provide a total solution for customers.

We serve organizations in multiple sectors, including Energy/Oil & Gas, Biogas, Landfill Gas & Renewable Fuels, Municipal Wastewater and Industrial Air & Water.

Visit streamlineinnovations.com for more information.

About Kayne Anderson Capital Advisors, L.P.
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on real estate, credit, infrastructure/energy, renewables, and growth equity. Kayne’s investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. As responsible stewards of capital, Kayne’s philosophy extends to promoting responsible investment practices and sustainable business practices to create long-term value for our investors. Kayne manages $33 billion in assets (as of 4/30/2022) for institutional investors, family offices, high net worth and retail clients and employs 325 professionals in five core offices across the U.S.

About Riverstone Holdings LLC
Founded in 2000, Riverstone is an investment firm focused on executing private equity and credit investments in energy, power, decarbonization and infrastructure. To date, the Firm has raised approximately $43 billion of capital, which it has deployed across its platform to over 200 portfolio companies since inception. For more information about Riverstone, please visit www.riverstonellc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220616005327/en/

Streamline Innovations

Chip Van Os

Chief Financial Officer

Streamline Innovations, Inc.

chip.vanos@streamlineinnovations.com



Kayne Anderson

Paul Blank

Chief Operating Officer Kayne Anderson Capital Advisors, L.P.

310-284-6410



Riverstone Holdings LLC

Adam Kneller

Managing Director, Head of Credit Investor Relations

akneller@riverstonellc.com

212-271-2941

Source: Streamline Innovations, Inc.

FAQ

What is the purpose of Streamline Innovations' recent capital raise?

The capital raise aims to expand the lease fleet of Valkyrie™ hydrogen sulfide treatment plants and broaden technology offerings in Renewable Natural Gas and Carbon Capture markets.

Which funds led the equity round for Streamline Innovations?

The equity round was led by Kayne Anderson Energy Infrastructure Fund (KYN) and Kayne Anderson NextGen Energy & Infrastructure (KMF).

How is the Term Loan of Streamline Innovations recognized?

The Term Loan has been recognized as green financing by Sustainable Fitch, validating its alignment with environmental sustainability principles.

What technology does Streamline Innovations use for hydrogen sulfide treatment?

Streamline Innovations uses its patented Valkyrie™ technology, which converts toxic hydrogen sulfide into elemental sulfur, suitable for agricultural use.

How does Streamline Innovations contribute to environmental sustainability?

Streamline's technology helps improve operational performance and profitability while enhancing environmental outcomes and overall ESG scores.