Apex Clean Energy, Ares Management, EPIC Midstream, and Port of Corpus Christi Authority Sign Memorandum of Understanding for Gigawatt-Scale Green Fuels Hub on Texas Gulf Coast

Powered by Gigawatts of Texas Wind and Solar, Contemplated Project Would Produce Green Fuels at Scale to Accelerate Decarbonization of Heavy Industry, Agriculture, and Global Transport

Apex Clean Energy, LLC (“Apex”), funds managed by the Infrastructure and Power strategy of Ares Management Corporation (NYSE: ARES) (“Ares”), EPIC Midstream Holdings, LP (“EPIC”), and the Port of Corpus Christi Authority (“PCCA”) announced today that they have entered into a nonbinding memorandum of understanding (“MOU”) to explore the development of a leading green hydrogen production, storage, transportation, and export operation, including a newly constructed dedicated pipeline and a green fuels hub to be located at the Port of Corpus Christi on the Texas Gulf Coast.

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As contemplated by the parties, the project would produce green hydrogen and other derivative green fuels in volumes not yet seen in the United States, with additional scale possible by decade’s end. (Graphic: Business Wire)

As contemplated by the parties, the project would produce green hydrogen and other derivative green fuels in volumes not yet seen in the United States, with additional scale possible by decade’s end. Apex expects to utilize its industry-leading portfolio of wind and solar projects currently in development in Texas to power facilities producing green hydrogen and derivative green fuels products. In addition, EPIC will consider leveraging its pipeline construction and operating expertise to accelerate the development of a new, dedicated green fuels pipeline. The project would also endeavor to leverage and develop existing and new storage, processing, and export infrastructure sited on real estate owned by PCCA.

Ares and PCCA previously executed a separate nonbinding memorandum of understanding in May 2021, with the intention of developing renewable energy infrastructure on PCCA-owned property to support the production of green hydrogen and optionality to provide renewable power directly to the port and its customers. This MOU builds on that effort, specifically with respect to the development of green fuels projects.

“We are excited to build on our existing relationship with PCCA to develop and build what we believe will be one of the largest green hydrogen projects in the country to date,” said Keith Derman, Partner and Co-Head of Ares Infrastructure and Power. “The project demonstrates the type of innovative, broad, and collaborative approach across industries and stakeholders that we believe can deliver novel energy solutions that help accelerate the transition to a low-carbon economy and combat climate change. Further, this underscores Ares’ leading capabilities in providing differentiated solutions to a growing asset class as we seek to drive returns for our investors through opportunities aligned with their sustainability goals.”

“This project seeks to generate and deliver green hydrogen and other clean fuels precisely where they are needed most—at the industrial backbone of our nation,” said Mark Goodwin, Apex Clean Energy President and CEO. “Together with Ares, EPIC, and the Port of Corpus Christi, Apex would leverage the highest-quality wind and solar resources in Texas to help decarbonize difficult-to-abate industries—including the transportation, shipping, fertilizer, chemical, and refining sectors—and include optionality for global export. This would be green fuel production at gigawatt scale.”

“This initiative is exactly the type of interdisciplinary collaboration that would enable scalable projects that move the needle on diversification of the energy marketplace,” said Jeff Pollack, Chief Strategy and Sustainability Officer for the Port of Corpus Christi. “This monumental potential project would directly contribute to the burgeoning clean hydrogen hub at the Port of Corpus Christi and would directly support our ambitions to cultivate world-scale hydrogen exports as our part in national decarbonization and energy balance of trade objectives.”

The nonbinding MOU marks the second significant milestone for Apex in the green hydrogen sector, following the 2021 announcement of a 345 MW wind power purchase agreement and development services agreement for a hydrogen production facility, also located in Texas.

About Apex Clean Energy

Apex Clean Energy was founded with a singular focus: to accelerate the shift to clean energy. Through origination, construction, and operation of utility-scale wind, solar, and storage facilities, distributed energy resources, and green fuel technologies, Apex is expanding the renewable frontier across North America. Our mission-driven team of more than 300 professionals uses a data-focused approach and an unrivaled portfolio of projects to create solutions for the world’s most innovative and forward-thinking customers. Apex is a portfolio company of funds and other accounts managed by the Infrastructure and Power strategy of Ares Management Corporation. For more information about how Apex is building the energy company of the future, visit apexcleanenergy.com or follow us on Facebook, Twitter, and LinkedIn.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2021, Ares Management Corporation's global platform had approximately $306 billion of assets under management, with approximately 2,100 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com. Follow Ares on Twitter @Ares_Management.

About EPIC Midstream Holdings

EPIC was formed in 2017 to build, own and operate midstream infrastructure in the Delaware, Midland and Eagle Ford basins. EPIC's Crude Oil Pipeline and NGL Pipeline each span approximately 700 miles and transport crude and natural gas liquids for delivery from the Permian and Eagle Ford basins into the Corpus Christi market. The Crude Oil Pipeline connects to the Port of Corpus Christi, including EPIC’s Marine Terminal, third-party export terminals and local refineries. EPIC’s NGL Pipeline has connectivity to EPIC’s operated fractionation complex in Robstown, Texas as well as Gulf Coast refiners, petrochemical companies and export markets. EPIC is a portfolio company of funds managed by the Private Equity Group of Ares Management Corporation (NYSE: ARES). For more information, visit www.epicmid.com.

About The Port of Corpus Christi

As a leader in U.S. Crude Oil export ports and a major economic engine of Texas and the nation, Port Corpus Christi is the largest port in the United States in total revenue tonnage. Strategically located on the western Gulf of Mexico with a 36-mile, soon to be 54-foot (MLLW) deep channel, Port Corpus Christi is a major gateway to international and domestic maritime commerce. The Port has excellent railroad and highway network connectivity via three North American Class-1 railroads and two major interstate highways. With an outstanding staff overseen by its seven-member commission, Port Corpus Christi is “Moving America’s Energy.” For more information, visit www.portofcc.com.

Disclosure

There is no certainty that a transaction will proceed or the terms on which it would proceed.

Forward-Looking Statements

Statements included herein contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. Forward-looking statements can be identified by the use of forward looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "predicts," "intends," "plans," "estimates," "anticipates," "foresees" or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors. Any forward-looking statement speaks only as of the date on which it is made. Ares Management Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call, whether as a result of new information, future developments or otherwise, except as required by law.

Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of Ares or an investment fund managed by Ares or its affiliates.

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