Suburban Propane to acquire stake in Independence Hydrogen

Suburban Propane Partners purchased a 25 percent equity stake in Independence Hydrogen, a veteran-owned and -operated supplier of gaseous hydrogen solutions, for $30 million. The partnership also announced the creation of a new subsidiary, Suburban Renewable Energy, as part of its long-term strategic goal of building out a renewable energy platform.

According to Suburban Propane, hydrogen can help decarbonize the material handling, transportation and heavy industry sectors, and provide grid resiliency as backup power and long-duration storage to enable the deployment of intermittent renewable energy sources.

“We believe in the role that hydrogen will play in the move toward decarbonization across many sectors of the economy,” says Michael Stivala, president and CEO of Suburban Propane.

Stivala says Suburban Propane’s focus on safety and its localized service model are situated to support the adoption of hydrogen solutions in the marketplace and accelerate the growth of Independence Hydrogen.

“I have the honor of leading a team of fellow veterans with fierce execution skills, and we are on a mission to make our communities safer and more energy resilient with reliable, cost-effective and environmentally friendly hydrogen,” says William Lehner, Independence Hydrogen’s founder and CEO. “Suburban Propane joins our existing investors at Hivers & Strivers, a venture group that backs military veterans exclusively, to create a true partnership with a shared vision to supply clean hydrogen locally in resilient, networked hubs for powering the American energy transition.”

Suburban Propane says its formation of Suburban Renewable Energy will serve as a platform for its investments in renewable energy technologies and businesses.

In addition to the investment in Independence Hydrogen, Suburban Renewables will also hold the partnership’s 39 percent equity stake in Oberon Fuels, acquired in September 2020. Oberon is a developer and producer of renewable dimethyl ether (rDME), which, when blended with propane, can significantly reduce emissions and carbon intensity, Suburban Propane says. Additionally, rDME has the potential to be an efficient and cost-effective carrier of hydrogen.

The partnership is continuing to invest in Oberon’s technology and is working toward the commercial sale of propane and rDME-blended products.