EverGen acquires 50% interest in 3 RNG projects in Ontario
May 26, 2022
The acquisition marks EverGen’s entry into the Ontario market and access to development projects that provide the potential to triple EverGen’s RNG capacity, exceeding 1,000,000 GJ annually.
EverGen Infrastructure Corp., Canada’s Renewable Natural Gas (RNG) Infrastructure Platform is pleased to announce it has entered into definitive agreements, with Northeast Renewables LP, dated May 20, 2022, and acquired a 50 per cent interest in a portfolio of RNG development projects (Project Radius) in Ontario.
Along with the letter of intent to acquire a 67 per cent interest in Alberta based GrowTec that was announced in March, EverGen is now positioned as the leading RNG infrastructure platform in Canada, with a footprint in three of the four largest jurisdictions in the country and plans for further expansion.
Project Radius, located in southern Ontario, is a late-development-stage portfolio of three high-quality, on-farm RNG projects, collectively capable of producing ~1.7 million GJ/year of RNG that will contribute to the reduction of emissions from agricultural operations in southern Ontario. Each of the three projects is expected to produce ~550,000 GJ/year and will be constructed throughout 2023 and 2024.
Under the terms of the agreements, EverGen has acquired a 50 per cent interest in Project Radius for a cash contribution of $1.5 million, which represents 50 per cent of the initial development funding tranche of $3.0 million. EverGen’s share of the initial tranche of development funding will be provided from existing working capital and operating cash flow and is expected to advance the projects to the Notice-to-Proceed (NTP) phase of development within the next six months.
EverGen will work with Northeast on developing Project Radius to achieve NTP, at which time EverGen will have the right to participate in funding its proportionate share of the capital to construct large scale anaerobic digesters that convert biodegradable waste into biogas, which is then upgraded to RNG for use in the gas grid. Additionally, EverGen has a right of first offer to transition as exclusive operator of Project Radius at NTP. Project Radius is in late-stage negotiations for feedstock supply with multiple aggregators, as well as offtake agreements with utility-scale distribution companies.
“The acquisition of Project Radius provides a foothold in Ontario – a new and strategic jurisdiction in which EverGen can continue to participate in the consolidation and growth of the RNG industry in the near-term, as well as benefit from project economics in line with or exceeding those we have seen with our initial projects,” said Chase Edgelow, CEO of EverGen. “Working alongside Northeast to advance the projects, EverGen will deliver on our platform expansion commitments with the potential to exceed 1,000,000 GJ of RNG production annually. Ontario has an abundant amount of excess organic feedstock, and as a leader in the RNG industry, EverGen can develop the sustainable infrastructure that contributes to carbon-negative energy production and the greening of the province.”
“The team at Project Radius is dedicated to helping Ontario and Canada reach their net-zero emissions targets. Our RNG projects will reduce the carbon intensity of agricultural operations and natural gas customers, improve the competitiveness of growers and contribute to the local economy through construction jobs, purchase of materials and services and new full-time employment,” said Joshua Samuel, president of Northeast. “We are excited to partner with EverGen and leverage their expertise and RNG infrastructure platform to deliver critical clean energy at the community level as quickly as possible.”
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