DCRB – Climate SPAC with Energy Expertise

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Introduction to DCRB SPAC

Educating people on the environmental issues of the world is important. Topics like climate change and global warming are just a few. It is something that is still in the makings and companies are yet to really make progress on it. But that is exactly what this company is doing. DCRB is focusing on advancing “the objectives of global decarbonization”. They plan on investing in many different sectors, such as energy and agriculture industries.

Management Team

The team is lead by CEO Erik Anderson and lead independent director Jim McDermott. Anderson has a lot of experience working in the energy and tech industries. McDermott, on the other hand has over 2 decades of experience working specifically in the decarbonization and clean tech space industries.

Apparently they cannot assure that all “key personnel will remain in senior management or advisory positions with the combined company.” On the bright side, these two leaders do have a lot of first-hand experience. Both have worked a lot in the energy and carbon industries, making them valuable assets. They are definitely more than ready to advance the progress of clean energy and tech.

CEO – Erik Anderson

CEO Mr. Anderson talks what makes a company successful and gives his advice to young leaders.

According to the websites bio, Erik holds a degree in Industrial Engineering from Stanford University (both masters and bachelors) and a degree in management engineering from Claremont McKenna College. In his early days, he was recognized as one of the “Top β€œ40 under 40” young achievers and emerging leaders” by a business journal. Throughout his early career he has also served on the Board of Avista Corp (an energy management company) for more than 16 years.

Erik has made a lot of personal achievements especially last year (2020). In October, he became CEO of Decarbonization Plus Acquisition Corporation. This corporation was seeking feasible ways to decarbonize the entire global economy. Then in November, he joined the Bank of Silicon Valley and served as Chair of the Advisory Committee there.

Director – Jim McDermott

Mr. McDermott discussing his Renewables Group Stamps (2014)

Mr. McDermott graduated from Colorado College with a degree in Philosophy. Then he got a Business degree from UCLA afterwards. Currently McDermott is also leading two other company’s: Rusheen Capital Management & 1PointFive. The first company invests in mini corporations associated with carbon capture and energy industries. The second company is unique because it owns many air capture and sequestration plants in the US. The corporation utilizes “Carbon Engineering’s proprietary and patented technology” to operate the plants.

Sectors of Focus

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According to info from a website, the main goal of West River Group is to “build a company whose principal effort is developing and advancing a platform that decarbonizes the most carbon-intensive sectors”. Basically they are trying to reduce the amount of carbon input in the world’s industries. The following are a few target companies:

path – This is a company that cleans storage and rail tank cars using very waste-efficient methods that reduce environmental pollution and waste. This company would be good to invest in because it helps overall to reduce the company’s carbon footprint. Path’s statistics include reducing health and environmental “impact[s] across major categories by an average of 92%”.

UTILITY – A unique energy company with headquarters stationed in Utah. They utilize state of the art nanotech to redefine how energy is used and stored. According to their webpage, their “technology is centered around the state-of-the-art Oxide-Ion Chipβ„’ solution”. Investing in this sort of corporation would give the SPAC an edge over competition because of how new the technology is.

Sponsor Analysis

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Being led by two qualified individuals helps West River Group to be successful. In addition to that, this SPAC has very clear objectives and knows what theirs goals are. They want to help decarbonize various industries like the energy industry. I personally believe that helping to solve environmental issues is also a good target for any SPAC. West River group is also doing well financially, whether its attaining investment deals or raising funds.

Discussion on our Findings

When DCRB was first established, they raised $200 million as part of its first offering. They have now gone deeper and deeper into the decarbonization industry. According to their IPO filing, the company “sees an opportunity to place decarbonization investments beyond electricity and transportation.” More so, they mention how many global urban and agriculture industries “remain[s] largely under-resourced in terms of investments dollars expressly seeking measurable improvements in carbon intensity”. It seems they will probably invest in these industries too.

In a different article, by Taylor Soper, it states that this company has about “$2 billion in assets under management”. In addition to this, they have multiple investments in companies like Energy Innovation Capital. They also invest in a few Seattle-based startups such as Igneous, Pro.com, The Riveter, and more.

Observations

From a personal perspective, I am very supportive of this Group and its SPAC, as I also believe in cleaner energy and reducing carbon emissions globally. We can see it’s clear that West River Group is doing a lot to progress the decarbonization aspect of a lot of industries. They are doing a good job making very specific targets helping industries such as agriculture to reduce carbon emissions overall.

West river also seems to be trying to make their company very diverse and equal. On their website, there’s an entire article dedicated to these topics. Their data shows proves that more diverse startup/venture teams who embrace people from different backgrounds have better financial results. Another fact is in 2020 they were able to finally to establish a “by design, gender-balanced” investment team. This shows that the company is very well rounded and understands the importance of diversity and gender equality.

One final thing to note though is that the last 2 SPAC’s that this company created both went bankrupt. Their first SPAC, Silver Run Acquisition I, first went public early 2016, but later on went bankrupt. Afterwards, their second SPAC, Silver Run Acquisition II (established in early 2017), also filed for bankruptcy in 2019. Later in 2020 it was sold for a price of $220 million. But looking at the current progress of DCRB, it doesn’t look like its going bankrupt anytime soon. More info can be found here.

Deal Insights

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A very recent deal that West River Group has acquired is with Hyzon, a company that ” sells hydrogen zero-emission fuel-cell powered commercial vehicles”. Together, they plan to “raise approximately $626 million” through this merging deal. More info on Hyzon can be found here.

Another deal is mentioned in the same article by Taylor Soper (mentioned previously). It discusses West River making a deal by selling its debt investment business to SVB Financial Group. Accordingly this will “help create the SVB Capital Credit Platform, a new arm of SVB that will provide investment opportunities to institutional investors and debt options to commercial banking clients.”

Conclusion

DCRB is definitely working in the right direction as of now. Their goals of decarbonizing industries like energy and agriculture are very important. West River Group as the sponsor of this SPAC is also contributing a lot. Whether it’s securing deals with companies or working to make their teams more diverse and equal, their working overtime to achieve their targets. Overall, this SPAC is likely to surpass its 2 predecessors and help to solve many carbon-related environmental issues in the future.

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