Suburban Propane Partners announced its wholly-owned subsidiary, Suburban Renewable Energy, has reached an agreement to acquire a platform of renewable natural gas (RNG) assets from Equilibrium Capital Group.
In addition to the purchase of two operational biogas facilities, the parties have formed a partnership to serve as a long-term growth platform for the identification, development and operation of additional RNG projects; including an existing pipeline of identified RNG projects that are in various stages of development.
The RNG platform to be acquired is diversified across feedstocks, geographies and revenue streams, and complements Suburban Renewables' ongoing activity to construct, own and operate an RNG facility at Adirondack Farms in Peru, New York.
While the acquisition will immediately enhance and increase Suburban Renewables' presence in RNG production and distribution, the partnership with Equilibrium through the joint venture arrangement will provide growth and experienced management in the rapidly developing waste-to-energy economy, the firms said.
RNG can be produced from multiple organic waste streams; including agricultural and food waste, helping to reduce methane emissions, while offering a low carbon solution as a drop-in replacement for traditional natural gas.
"This investment meaningfully advances our strategic goal of building out a renewable energy platform to help drive the energy transition to a low carbon economy. We are excited to be partnering with the Equilibrium team, which has a proven track record of sourcing, developing and managing high quality renewable natural gas producing assets," said Michael Stivala, president and CEO of Suburban Propane.
"We look forward to building upon and advancing this opportunity as we seek to leverage Equilibrium's seasoned management team with a well-established network of operators, engineering and construction providers and off-takers, and a strong commitment to sustainable investments. The scalable platform complements our existing portfolio of renewable energy assets, either as a stand-alone RNG distributor, or as a pathway to rDME and hydrogen production."
"Biofuels and renewable natural gas are now mainstream commodities in the transition to low carbon energy and decarbonization of our economy. The major challenge will be scaling cost-effective production supplies to meet market demand. Equilibrium is taking our experience investing in, developing, and operating scalable RNG production infrastructure, and partnering with Suburban's market leadership and expertise in gas logistics, trading and user applications, to build assets that drive towards these goals," said Dave Chen, CEO of Equilibrium Capital.
Suburban Propane Partners acquires RNG assets from Equilibrium Capital Group
