GreenGas, which is based in Charleston, South Carolina, is a fully integrated renewables platform. It has a track record of originating, developing and operating RNG projects.
It utilises mature technologies to capture, purify and transport biogas from existing organic waste streams for its end use as pipeline quality RNG.
GreenGas sells the RNG and associated environmental attributes under long-term offtake contracts with investment grade commercial & industrial customers, such as Mercedes-Benz, Berkshire Hathaway Energy and Duke University.
The transaction close is targeted for Q1 2023 and subject to customary closing conditions and regulatory approvals.
Marathon Capital, LLC acted as exclusive financial advisor to GreenGas on the transaction. CEO and Founder Marc Fetten will continue to lead GreenGas alongside the existing management team.
Kyle Mangini, global head of infrastructure at IFM Investors, said: “This is the first investment from the net-zero fund in the low carbon fuel sector. We’ve got investments in solar, and wind, but this is the first investment that we’ve made in low carbon fuels.”
He added: “To me, this is the best kind of ESG investing because it’s profitable, and it’s good for the environment. There’s a fair amount of debate around ESG investing, but this is really a win-win.”