The owners of two North American renewable natural gas (RNG) producers have put them up for sale, after new US tax incentives and recent big investments in the sector incentivised them to leave at a time when profits would be maximised, according to Reuters.
While the price of RNG remains much higher than traditional natural gas, more energy companies and investment firms are betting the global drive to reduce carbon emissions, coupled with financial support from governments, will give the industry a greater share of energy consumption.
Following BP's $4.1bn deal to buy US-based Archaea Energy in October, smaller firms Amp Americas and BerQ RNG are working with investment banks to make themselves attractive to potential buyers.
Amp Americas, owned by investors including Houston-based buyout firm EIV Capital and infrastructure-focused Generate Capital, is seeking a valuation of around $1bn cluding debt, the sources said.
It was not immediately clear what valuation BerQ RNG, in which investment firm Starwood Energy Group acquired a majority stake last year, is expected to achieve.
The sources requested anonymity because the matter is confidential. Amp Americas, BerQ RNG, EIV, Generate and Starwood did not respond to Reuters' requests for comment.
Chicago-based Amp Americas builds and operates facilities that capture and compress methane on dairy farms for injection into fuel pipelines and offers services to other developers.
Most of the projects BerQ RNG has worked on in the United States and Canada since its founding in 2016 use animal, food and landfill waste as their source.