Australia-headed IFM Investors has announced that its newly formed IFM Net Zero Infrastructure Fund (NZIF) has signed a definitive agreement to acquire a majority interest in GreenGasUSA, a US-based renewable natural gas (RNG) developer, owner, and operator.
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GreenGasUSA utilizes mature technologies to capture, purify and transport biogas from existing organic waste streams for its end use as pipeline-quality RNG.
The company sells the RNG and associated environmental attributes under long-term offtake contracts with investment-grade commercial, and industrial customers, such as Enviva, Mercedes-Benz, Berkshire Hathaway Energy, and Duke University.
RNG projects operated by GreenGasUSA can deliver significant emission reductions from waste streams by capturing methane, which according to the US Environmental Protection Agency (EPA) has a 25 times more harmful impact on atmospheric warming than carbon dioxide (CO2), demonstrating strong alignment with the net zero energy transition.
Secures expansion capital
CEO and Founder Marc Fetten will continue to lead GreenGasUSA alongside the existing management team.
The acquisition marks a significant milestone for the company and secures long-term investment capital to expand its footprint of renewable natural gas projects and continue delivering on its mission to help food processors, farmers, and industrial manufacturers capture greenhouse gas (GHG) emissions from their operations.
Our new partner IFM will be investing in GreenGas as a platform to meet the growing demand for renewable energy solutions across the United States. Our projects not only reduce greenhouse gas emissions but help RNG buyers decarbonize their energy-intensive operations. We look forward to working with IFM to grow the platform, said Marc Fetten.
First “low-carbon fuels” investment for IFM NZIF
IFM Investors manages investments across infrastructure, debt, listed equities, and private equity assets.
Launched in 2022, IFM NZIF is an open-ended fund targeting essential infrastructure assets that seek to accelerate the world’s transition to a net-zero emissions economy.
GreenGasUSA represents NZIF’s first investment in the low-carbon fuels sector, a core target sector of the fund.
We are excited to welcome GreenGasUSA into the IFM NZIF portfolio and support its next phase of growth. RNG projects operated by GreenGas can deliver significant emissions reductions, which is well aligned with IFM’s net zero commitments and our purpose to protect and grow the long-term retirement savings of working people, said Kyle Mangini, Global Head of Infrastructure at IFM Investors.
Transaction close is targeted for Q1 2023 and is subject to customary closing conditions and regulatory approvals.
Marathon Capital, LLC acted as the exclusive financial advisor to GreenGas on the transaction.
