GIP closes debt financing for Colorado RNG project
The non-recourse project debt financing is provided by a lender in the US and includes both a construction and term loan facility of up to $48 million (€33.3 million).
Construction of the GreenGas Colorado RNG Project is progressing well, said GIP, and the project continues to be on time and on budget, with gas production expected in early 2023. Groundworks are nearly complete, with work now commencing on above-ground structures.
The project has a fixed price EPC contract and is expected to cost around $90 million (€62.5 million), including financing, debt service reserve and soft costs, with approximately $29 million (€20.1 million) invested to date. Once operating at full production, the project is expected to generate around $20 million (€13.8 million) annually in EBIDTA.
Jesse Douglas, CEO and director of GIP, said: “Closing this project debt financing is another significant milestone as we continue our build, own and operate strategy for bringing to market the cleanest energy in the world through our growing portfolio of RNG projects.
“With all material contracts executed and financing complete, we are accelerating construction activities to produce RNG as early as possible. This project is expected to generate 1,000 GJ per day of RNG, which is equivalent to fuelling approximately 6 million cars per annum on a net-zero basis, providing a significant environmental impact.”