In the United States (US), Kinder Morgan, Inc. (KMI), one of the largest energy infrastructure companies in North America has announced that it has closed on the acquisition of North American Natural Resources, Inc. (NANR) and its sister companies, North American Biofuels, LLC and North American-Central, LLC.
The US$135 million acquisition in the combined purchase price and related transaction costs includes seven landfill gas-to-power facilities in Michigan (MI) and Kentucky (KY).
Shortly following the close, KMI says that it will make a final investment decision (FID) on the conversion of up to four of the seven gas-to-power facilities to renewable natural gas (RNG) facilities, with a capital spend of approximately US$175 million.
Pending FID, these facilities are expected to be in service by early 2024. Once complete, the facilities are expected to generate approximately 2 billion cubic feet (Bcf) per year of RNG.
This acquisition and the additional investments discussed above, combined with the recent Kinetrex Energy and Mas CanAm acquisitions, will enhance the company’s vertically integrated platform that delivers differentiated solutions across the RNG value chain.
The combined RNG operations will provide KMI with an annual RNG generation capacity of approximately 7.7 Bcf per year once all of the RNG facilities are in service.
The remaining three NANR assets, projected to have a combined electrical capacity of 4.8 MW in 2023, will further diversify KMI’s renewable portfolio by adding electricity generation to its landfill gas-to-power operations.
We are excited to continue KMI’s commitment to growing our RNG business through the acquisition of NANR’s facilities and expertise. We believe this further positions us as a leader in the RNG marketplace and look forward to expanding our RNG footprint to benefit the customers, businesses, and communities we serve, said Anthony Ashley, President of Energy Transition Ventures at KMI.
We are proud of the business NANR’s employees have built over the past 43 years. With the evolution of energy markets, we are excited to join the KMI family as the world transitions to a cleaner energy future, said Bob Evans, President at North American Natural Resources (NANR).
KMI expects the investment to be accretive to its shareholders as the four converted RNG facilities become operational over the next 18 months, with the purchase price and additional development capital expenditures representing less than six times the expected 2024 EBITDA.