Amber Infrastructure is investing in renewable natural gas (RNG) through a $545m (€506m) project equity investment partnership with US and Canada projects developer Green Impact Partners (GIP).
Amber has formed the partnership and has invested $60m to acquire a 50% stake in GIP’s GreenGas Colorado, a dairy-waste-to-renewable natural gas facility in Colorado expected to generate approximately 360,000MMBtu per year once fully operational.
GIP’s project pipeline includes the Future Energy Park in Calgary, which is expected to become North America’s largest carbon-negative energy facility.
GIP said following receipt of final permits and the close of project debt, which is expected in the next few months, with equity fully funded, it will receive approximately $340m in 2023 to build Future Energy Park and Iowa RNG, with both projects slated to begin construction in 2023. A remaining $145m of sale proceeds is payable when the projects commence commercial operations.
Following the close of Future Energy Park and Iowa RNG, GIP said it expects to have approximately $70m in available cash at the end of 2023 and anticipates developing five additional projects expected to start construction in 2023 and early 2024.
Amber said it expects to partner GIP on future opportunities over the next two years by providing equity if the parties mutually agree to investment terms.
Tom O’Shaughnessy, the head of North America at Amber Infrastructure, said: Amber’s partnership with GIP will accelerate some of the most environmentally beneficial projects in North America.
“These projects, which are actively being supported by progressive public policies, are capable of supporting the agricultural and industrial sectors whilst lowering the environmental impact of carbon and methane emissions.
Jesse Douglas, CEO of GIP, said: ”We are very excited to announce this transformative transaction, moving forward with a leading infrastructure investment partner, that highlights the immense value of our net zero projects and development portfolio.”
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