Quarterly updates: Q2 2026

We are proud to share key updates from the second quarter of 2026.

We announced the successful exit of VAC at $1.9 billion in equity value, our largest transaction to date. This marks the culmination of a multi-year effort to scale a critical rare-earth magnet supplier into the cornerstone of a fully integrated Western supply chain. We also completed our acquisition of Sedron Technologies, positioning the company to move from proven pilots to a national infrastructure buildout that turns municipal and agricultural waste into clean water, fertilizer, and carbon-negative energy.

In June, we released our annual Industrial Decarbonization Report, showcasing how embedding decarbonization into core business strategy drives substantial enterprise value.

Our portfolio companies continue to lead in their sectors: BioVeritas entered into an agreement with Topsoe; Divert secured a strategic partnership with Mitsubishi and opened a new facility in Longview, Washington; Utility announced a service agreement with SAMJIN E&I; and CFP Energy announced the first-ever ETS2 trade with an end client, FairEnergie GmbH.

Thank you for your continued partnership and support as we build toward a lower-carbon future. 

Charles Cherington & Troy Thacker
Managing Partners

Investment activity

Energy Fuels signs definitive agreement to acquire Vac

Energy Fuels has agreed to acquire Vac for $1.9 billion in equity value, representing the largest transaction in Ara’s history. The deal positions the combined company to capitalize on surging demand for rare earth magnets by bringing together Energy Fuels’ upstream and midstream rare earth assets with Vac’s downstream permanent magnet manufacturing expertise to create a fully integrated mine-to-magnet platform.

Acquisition of Sedron Technologies

“Sedron is transforming materials that once harmed the environment into valuable, revenue generating products,” said Cory Steffek, Partner. “Our focus is on positioning Sedron as the leader in circular waste management—converting waste into carbon negative commodities faster, more cost effectively, and with greater energy efficiency than any other solution available. This model delivers benefits for communities, farmers, and the environment alike.”

Read more about Ara’s views on the opportunity in agriculture in Mergermarket.

2025 Industrial Decarbonization Report

The 2025 Industrial Decarbonization Report highlights the emissions reduction success of our portfolio, underpinning our approach to value creation and achieving a reduction of 2.0 million metric tonnes of CO2e and 464.1 thousand metric tonnes of waste.

This year’s report is our most comprehensive to date, reflecting significant platform growth following the final close of Ara Infrastructure Fund I and the continued build out of the Energy strategy, for a combined total of $7.7 billion in AUM and 27 portfolio companies.

emissions reduction

2.0M
MTCO2e reduction1

equivalent to

464.1K
passenger vehicles driven for one year2

waste reduction

912.5K
MT of waste reduction1

equivalent to

130.1K
garbage trucks’ worth of waste2

1 1. MT = Metric Tonnes. CO2e = Carbon Dioxide Equivalent. ERP = Emissions Reduction Potential/Avoided Emissions. WRP = Waste Reduction Potential/Avoided Waste. Absolute/realized emission reduction amounts calculated irrespective of Ara’s ownership share. Reported data is based on best available information from the company and third-party analysis, and relies on certain assumptions. For illustrative purposes only. Reductions include amounts directly resulting from Ara portfolio company operations, in addition to reductions realized by third parties as a result of services provided by portfolio companies. Excludes cross fund investments. 2. Passenger vehicle and garbage truck equivalency based on 2025 EPA GHG Equivalencies Calculator.

portfolio highlights

BioVeritas entered into an agreement with Topsoe, a leading global provider of advanced technology and solutions for the energy transition, to produce renewable fuels from second-generation feedstocks.

Divert secured strategic partnership with Mitsubishi to scale circular infrastructure across North America, and opened facility in Longview, Washington to expand circular infrastructure for unsold food in the pacific Northwest.

Soane Materials announced a licensing agreement with CleanlyEco, a Slovakia-based private label laundry care manufacturer supplying laundry care products to brands across more than 25 countries in Europe.

Utility Global announced an engineering services agreement with SAMJIN E&I, a Korean industrial manufacturing and project development company.

Wattstor partnered with Portsmouth Water to deliver a 3MW solar project at its Highwood reservoir, doubling its renewable capacity to 6MW in its largest clean energy project to date.

Thought Leadership

Wastewater Treatment: The sewage problem Wall Street is betting on

Increasing regulatory and public pressures, legal liability, costs, and PFAS concerns are forcing utilities to rethink how they have traditionally handled and disposed of biosolids. Read Ara’s perspective on how modern wastewater technologies are unlocking significant untapped investment opportunities while simultaneously minimizing environmental impacts.

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Ara News

Ara will collaborate with Princeton University’s Andlinger Center for Energy and the Environment on research and initiatives that support the commercialization and scaling of companies making critical contributions to the industrial economy. As an E‑ffiliates member, Ara will contribute its perspective on mobilizing private capital and structuring projects to accelerate the deployment of critical industrial process technologies.

Ara is excited to congratulate Irina Markina, Chief Decarbonization Officer, and Reese Goldsmith, Head of Government Affairs, who were honored in Kayo’s “Top 26 in ’26” leaders in the Washington, D.C. energy and infrastructure list for the role they play in advancing a more sustainable industrial future. We applaud their contributions to the quality of our partnerships, company performance, and decarbonization results.

Q2 Speaking opportunities

Ara leaders joined key conversations to lend our viewpoint on the energy transition.

  • Charles Cherington | SAFE Summit
  • James O’Shea | Decarb Connect Europe
  • Doug Marsán | Insights From Organizations Leading The Way On First-of-a-Kind Climate Projects during London Climate Action Week
  • Reese Goldsmith | Kayo Energy and Infrastructure Summit
  • Teresa O’Flynn | Royal Bank of Canada Energy Transition Conference

new hires

Built to Decarbonize

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