CIM Group expands RNG investment with MAS Energy development platform acquisition

CIM Group has acquired 100 per cent of the renewable natural gas (RNG) development platform of MAS CanAm, LLC, an affiliate of MAS Energy, LLC, a leading developer, owner and operator of landfill gas-based RNG in the U.S. and Canada, including a portfolio of seven projects currently under construction or in development. As part of the transaction, the platform will be renamed Terreva Renewables.

Terreva is expected to produce RNG by year-end 2022 and will be a significant participant in the North American RNG sector, with the initial portfolio expecting to produce more than 3.9 million mmbtu of RNG per annum. CIM Group plans to meaningfully grow the Terreva Renewables platform in North America and further establish it as a leading player in RNG.

“CIM Group’s acquisition of Terreva represents a marquee transaction in the RNG sector that came about as a result of our long-standing commitment to and experience in renewable energy, and our strong, established relationship with MAS Energy. We continue to believe RNG is a crucial component of the global energy transition and are excited to contribute as a leader in decarbonization,” said Avi Shemesh, co-founder and principal, CIM Group.

Terreva’s initial portfolio comprises RNG projects under construction in Vancouver, B.C.; Appleton, Wis.; McElhattan, Penn.; Grayslake, Ill.; and Suffolk, Va., and exclusive gas rights for two additional projects in North Carolina. As part of the transaction, the existing development team will continue leading the company.

RNG continues to grow in use as the United States transitions to renewable fuels, supported on a federal level by the Renewable Fuel Standard program and by various state-level programs, such as California’s Low Carbon Fuel Standard and Oregon’s Clean Fuels Program. Utilities and other thermal energy end users are also increasingly turning to RNG as a method of reducing or eliminating their carbon footprint, either through voluntary means or regulation such as California’s Senate Bill 1440 and British Columbia’s Greenhouse Gas Reduction Regulation.

“Given RNG’s versatility, Terreva’s go-forward revenue strategy is to include a mix of high-quality transportation-related customers, investment-grade utilities, and other institutional offtakers under long-term fixed-price contracts. This flexibility makes it an extremely important resource in the fight against climate change,” added Shemesh.

In addition to RNG, CIM Group has waste-to-value experience as a partner with Bolder Industries, a producer of sustainable plastic and rubber products created from used tires that would otherwise be landfilled.

Since its inception in 1994, CIM has focused on real estate and infrastructure projects that serve the needs of communities throughout the Americas and is committed to investing in sustainable assets. CIM is an UNPRI signatory and its infrastructure projects have been recognized for sustainability by the California Organized Investment Network (COIN), a division of the California Department of Insurance.

Baker Botts LLP served as legal advisor to CIM Group in the transaction. MAS Energy was advised by Kirkland & Ellis LLP and Cantor Fitzgerald LP.