LS Power invests in US landfill RNG projects
LS Power partnered with The Landfill Group, a North Carolina-based developer and operator of landfill gas projects, to jointly develop a portfolio of landfill-gas-to-RNG projects throughout the US. The firm has also acquired an interest in a landfill-gas-to-RNG project in Lawrence, Kansas, operated by The Landfill Group.
The projects have long-term contracts with host landfills and convert landfill gas gathered onsite into pipeline-quality RNG. The RNG is then procured by utilities, gas marketers, compressed natural gas vehicle owners and others who are moving toward renewable fuels to reduce greenhouse gas emissions.
Initial investments from the partnership will target sites in Georgia, Iowa, Pennsylvania, North Carolina, and South Carolina.
David Nanus, co-head of private equity at LS Power, said: “Evolving consumer preferences coupled with the utility, regulatory, and legislative push to decarbonise our energy systems are driving growing demand for natural gas with green attributes.
“We are excited about partnering with The Landfill Group, a leading RNG project developer with decades of landfill gas experience, to help advance these initiatives.”
“This partnership represents LS Power’s initial investment into the broader renewable fuels market, where we anticipate expanding opportunities as decarbonisation efforts continue to increase,” commented Joe Esteves, CFO and co-head of private equity at LS Power.
“Reduction in the carbon intensity of the energy/power system is a secular long-term trend and one that is reflected by investments we have made over the years, which also include renewable generation, energy storage, and distributed energy resource platforms such as CPower and EVgo.”
Renewable fuels as RNG are growing in the market. According to the US Energy Information Administration’s Annual Energy Outlook 2020, over the last five years, RNG use as a transport fuel has increased 291%, preventing more than seven million tons of carbon dioxide.