Canada-headed waste-to-value developer Anaergia Inc. has announced that its US subsidiary has signed an agreement to advance a pivotal renewable natural gas (RNG) infrastructure project in the City of Riverside, California. Under this agreement, and subject to certain conditions precedent to financial closing and funding, Anaergia’s development-stage project asset, Riverside Bioenergy Facility, LLC (RivBF), will be sold to a developer with institutional investor funding.
RivBF currently has a lease with the City of Riverside that provides for, upon approval of the parties, construction of an organic waste-to-RNG infrastructure at the Riverside Water Quality Control Plant (RWQCP).
Anaergia Technologies, LLC, an Anaergia affiliate, is contracted to perform engineering, procurement, and construction (EPC) services for the RWQCP improvements after closing, with a financing commitment by the developer.
The EPC services include installing Anaergia’s advanced biogas conditioning and upgrading systems, organic waste feedstock processing systems, and upgrades at the RWQCP.
The majority of the EPC activities are slated to occur in 2026 and 2027, and Anaergia expects to recognize revenue of CA$39 million from these activities.
Provide O&M services after completion
The parties have also reached an agreement on operations and maintenance (O&M) services.
Under this arrangement, Anaergia Services, LLC, an affiliate of Anaergia, will provide O&M services to RivBF after the completion of EPC activities, under a long-term agreement.
These developments reflect Anaergia’s commitment to its capital-light model. The approach fosters strategic partnerships, enabling more rapid adaptation and increased flexibility to meet local and regulatory objectives.
By transferring project ownership to an institutional investor-backed developer, Anaergia reduces its financial exposure while ensuring the efficient deployment of its renewable energy solutions.
The new project is pivotal in advancing the City of Riverside’s sustainability efforts by significantly decreasing the carbon footprint of its RWQCP and complying with California’s SB1383 regulations for organic waste recycling. It also marks an important milestone in our commitment to providing impactful climate solutions for major organic waste producers, while aligning with Anaergia’s ‘capital-light’ strategy, said Assaf Onn, CEO of Anaergia.
The financial closing of the transaction is subject to satisfying certain conditions precedent, such as the execution of an amendment to the site lease agreement with the City of Riverside, receipt of applicable third-party consents and regulatory permits, and completion of certain ancillary agreements.
