EverGen enters LOI to acquire 67% interest in Alberta RNG facility
EverGen signed the LOI with Grow the Energy Circle (GrowTEC), a general partner of CKPPQ Farms, to acquire interest in the biogas facility and work with GrowTEC to develop and expand the renewable gas output at the facility.
GrowTEC, located on the Perry Family Farm near Lethbridge, Alberta, is a multi-faceted bioenergy venture of sustainable agriculture. At its core is an operating farm-scale anaerobic digester that converts biodegradable waste into biogas, which is then upgraded into RNG for use in the gas grid. The project has an offtake agreement with FortisBC and will contribute to the company’s target to make at least 15% of its gas supply carbon neutral by 2030.
Under the terms of the LOI, EverGen will acquire a 67% interest in the project, either directly or through ownership in a newly formed special purpose vehicle corporation that will hold assets of the project, for $6.6 million (€4.7 million). Additionally, GrowTEC will have the right to nominate a director to the EverGen board at closing of the proposed transaction (expected this spring).
The project is in Phase 1 of development, which is expected to produce 80,000 GJ of RNG annually and will be complete by the third quarter of this year. On closing the proposed transaction, EverGen will work with the GrowTEC team to commence Phase 2 expansion, which will add 60,000 GJ of RNG for a total of 140,000 GJ of RNG annually.
The acquisition would increase RNG production capabilities by over 40% across EverGen’s core operated projects.
“We are thrilled to be partnering with GrowTEC and working with the Perry Family Farm on EverGen’s first project in the Alberta market,” said Chase Edgelow, CEO of EverGen.
“Alberta is a region with high-quality organic feedstock and represents a strategic market for EverGen as it plans to become a dominant RNG producer in the province.
“As we expand our RNG infrastructure platform, we are focused on investing in truly sustainable operations that contribute to carbon-negative energy production and positively impact climate change initiatives.
“GrowTEC is a true green leader and we are looking forward to building a strong relationship in this agricultural community and having GrowTEC as a long-term equity holder in EverGen. This is another great example of the win-win strategic partnerships that EverGen has been able to strike with existing project owners and developers alike.”