EverGen completes acquisition of GrowTEC
GrowTEC, located on the Perry Family farm near Lethbridge, Alberta, is a multi-faceted bioenergy venture of sustainable agriculture, integrating responsible best practices and renewable energy.
Chase Edgelow, CEO of EverGen, said: “We are very pleased to complete the acquisition of GrowTEC and begin working alongside the GrowTEC team to convert the project to an RNG facility that supports the transition to carbon negative energy production in Alberta.
“Along with our recently announced acquisition of RNG development projects in Ontario, EverGen is expanding across the country, now in three of the four largest Canadian jurisdictions for RNG. Our focus on industry consolidation and the build-out of our RNG infrastructure platform is well underway as we move toward the potential to produce over 1,000,000 GJ of RNG annually.”
At the core of GrowTEC is an operating farm scale biogas facility consisting of an anaerobic digester which has been converting biodegradable waste into biogas and generating renewable power for over seven years. EverGen and GrowTEC will be completing additions to the facility in 2022, to process the biogas and upgrade it to RNG which will be tied into the local pipeline network. The project has an offtake agreement with FortisBC and will contribute to FortisBC’s target to have at least 15 percent of its gas supply carbon neutral by 2030.
The project is currently in Phase 1 of development which is expected to produce 80,000 gigajoules of RNG annually and will be complete by Q4 2022. EverGen will work with the GrowTEC team to commence Phase 2 expansion which is expected to add an additional 60,000 gigajoules of RNG annually for a total of 140,000 gigajoules of RNG production annually from the project.
EverGen acquired a 67 percent interest in the project for cash consideration of $2.1 million, subject to working capital adjustments, and the issuance of 600,000 common shares of EverGen that were issued on July 13, 2022. Additional cash considerations of up to $4.0 million will be made upon achievement of certain operational milestones. Cash consideration for EverGen’s interest in the project was funded from existing working capital and cash flow from operations.