IFM Investors has acquired US-based renewable natural gas (RNG) developer and operator GreenGasUSA for its open-ended net-zero infrastructure fund.
The global infrastructure fund manager has invested an undisclosed amount to buy the asset for the IFM Net Zero Infrastructure Fund (IFM NZIF).
The deal marks the IFM NZIF’s first investment in the low-carbon fuels sector. Launched in 2022, IFM NZIF already owns solar and wind assets.
Kyle Mangini, global head of infrastructure at IFM Investors, told IPE Real Assets that GreenGas currently had two operating facilities, with a third plant due to come into operation in the first quarter of this year.
“We really view this investment as an entry into the RNG sector, and we are going to provide tremendous support to the company so that it can build out this pipeline,” he said.
GreenGas utilises mature technologies to capture, purify and transport biogas from existing organic waste streams for end-use as pipeline-quality RNG.
Mangini said: “Ideally, this is a technology that we can bring to other parts of the world over time. As the company has additional resources, we really would like to see this opportunity expand.”
“Our new partner, IFM, will be investing in GreenGas as a platform to meet growing demand for renewable energy solutions across the United States,” said Marc Fetten, founder and chief executive of GreenGas.
“Our projects reduce greenhouse gas emissions and help RNG buyers decarbonise their energy-intensive operations,” said Fetten, who will continue to lead GreenGas alongside the existing management team.
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