In Canada, EverGen Infrastructure Corp. (EverGen), an independent renewable energy producer which acquires, develops, builds, owns, and operates a portfolio of Renewable Natural Gas RNG), waste-to-energy (WtE), and related infrastructure projects, has announced that it has signed a Letter of Intent (LoI) to acquire a majority stake in a biogas facility in Alberta (AB).
An error occurred
On your profile you can see what subscriptions you have access to and more information.
Is some of the information wrong – please contact our customer service.
Please reload the page
Do you want to read the whole article?
- Six editions per year
- Full access to all digital content
- The E-magazine Bioenergy international
- And more ...
Vancouver, British Columbia (BC) headquartered EverGen has entered into an LoI with Grow the Energy Circle Ltd (GrowTEC), in its capacity as general partner of CKPPQ Farms LP, to acquire a 67 percent interest in a biogas facility in Alberta (AB) and to work with GrowTEC on developing and expanding the renewable gas output at such facility.
According to EverGen, this asset is a “cornerstone Project in a strategic jurisdiction” on which EverGen can continue to participate in the consolidation and growth of the RNG industry as the transaction if completed, marks EverGen’s entry into the Alberta market and launch of its RNG Infrastructure Platform expansion.
GrowTEC, located on the Perry Family Farm near Lethbridge, Alberta, is a multi-faceted bioenergy venture of sustainable agriculture, integrating responsible best practices and renewable energy.
At the core of GrowTEC is an operating farm-scale anaerobic digester (AD) that converts biodegradable waste into biogas which is then upgraded to RNG for use in the gas grid.
The project has an offtake agreement with FortisBC and will contribute to FortisBC’s target to have at least 15 percent of its gas supply carbon neutral by 2030.
We are thrilled to be partnering with GrowTEC and working with the Perry Family Farm on EverGen’s first project in the Alberta market. Alberta is a region with high-quality organic feedstock and represents a strategic market for EverGen as it plans to become a dominant RNG producer in the province, said Chase Edgelow, CEO of EverGen.
Two-phase project
Under the terms of the LoI, EverGen will acquire a 67 percent interest in the Project either directly or through ownership in a newly formed special purpose vehicle corporation that will hold the assets of the project, for CA$6.6 million consisting of an initial cash consideration of CA$3.3 million and the issuance of 600 000 common shares of EverGen with a deemed value of CA$5.50 per share.
In addition, GrowTEC will have the right to nominate a director to the EverGen board at the closing of the Proposed Transaction. The closing of the Proposed Transaction is expected to be completed in the Spring of 2022.
Completion of the Proposed Transaction remains subject to a number of conditions, including the satisfactory completion of due diligence, the receipt of any required regulatory approvals including TSXV Venture Exchange approval, and the negotiation of definitive documentation. The Proposed Transaction is not subject to shareholder approval.
The project is currently in Phase 1 of development which is expected to produce 80 000 gigajoules (GJ) of RNG annually and will be complete by Q3 2022.
Upon closing of the Proposed Transaction, EverGen will work with the GrowTEC team to commence Phase 2 expansion which is expected to add an additional 60 000 GJ of RNG annually for a total of 140 000 GJ of RNG production annually from the Project.
This increases RNG production capabilities by over 40 percent across EverGen’s core-operated projects. Additional cash consideration of up to CA$4.0 million will be made upon the achievement of certain milestones. Consideration for EverGen’s interest in the project will be funded from existing working capital and cash flow.
As we expand our RNG infrastructure platform, we are focused on investing in truly sustainable operations that contribute to carbon-negative energy production and positively impact climate change initiatives. GrowTEC is a true green leader, and we are looking forward to building a strong relationship in this agricultural community and having GrowTEC as a long-term equity holder in EverGen. This is another great example of the win-win strategic partnerships that EverGen has been able to strike with existing project owners and developers alike, ended Chase Edgelow.
