EverGen Infrastructure has purchased a 50% stake in a portfolio of renewable natural gas (RNG) development projects (Project Radius) in Ontario, Canada, from Northeast Renewables.
As per the terms of the deal, which marks EverGen’s entry into the Ontario market, EverGen has acquired the stake in Project Radius for a cash consideration of $1.5m.
Within the next six months, EverGen will provide its share of initial funding to help advance the projects to the notice-to-proceed (NTP) phase of development.
The late-development-stage portfolio of the three RNG projects have a combined production capacity of approximately 1.7 million gigajoules (GJ) per year.
Each of the three projects are expected to have a production capacity of nearly 550,000GJ per year. The projects are expected to be constructed throughout 2023 and 2024.
EverGen CEO Chase Edgelow said: “The acquisition of Project Radius provides a foothold in Ontario, a new and strategic jurisdiction in which EverGen can continue to participate in the consolidation and growth of the RNG industry in the near-term, as well as benefit from project economics in line with or exceeding those we have seen with our initial projects.”
EverGen said that the acquired RNG projects provide it with the potential to triple its RNG capacity to more than 1,000,000GJ annually.
Edgelow added: “Ontario has an abundant amount of excess organic feedstock, and as a leader in the RNG industry, EverGen can develop the sustainable infrastructure that contributes to carbon-negative energy production and the greening of the province.”
