- Canada’s federal carbon tax recently hit a record $50/ton, helping fuel a veritable gold rush within the domestic carbon credit industry
- The move has simultaneously sparked a mass rush amongst Canadian industrial players to transition towards renewable energy sources, with renewable natural gas (“RNG”) top of the list
- EverGen Infrastructure has become a key player within the Canadian RNG sector, with three active processing plants within British Columbia, and development underway in Alberta and Ontario
- The company recently acquired a 50% stake in an Ontario-based RNG development, a move which will see the company boost its cumulative production capacity to upwards of 1 million gigajoules per annum
A European energy broker recently reached out to Base Carbon, a Canadian-listed carbon credit-focused investment fund (https://ibn.fm/t3xZW). The motive for the call? The broker was seeking to sell a portfolio of carbon credits generated in 2015 by a Chinese wind farm operation. Canada’s federal carbon tax hit a record $50/ton in April 2022 – effectively penalizing companies on account of their carbon footprint. That in turn has sparked a veritable ‘gold rush’ within the Canadian carbon credit industry, with hordes of companies actively seeking to mitigate their carbon emissions. Simultaneously however, it has also driven home the need for an ever-increasing number of companies to begin adopting renewable natural gas (“RNG”) as a core energy feedstock (https://ibn.fm/Nz6cN).
EverGen Infrastructure (TSX.V: EVGN) (OTCQB: EVGIF), a British-Columbia based renewable natural gas operator, is set to be a key beneficiary of this trend. The ongoing move towards adopting renewable energy sources was best enunciated by Modern Niagara, a Canadian integrated building contractor, which has set a carbon reduction goal of 30% by 2030.
“We had corporate sustainability goals. While discussing those goals, we were wondering how we’d change our 2030 and 2050 mandates, and RNG was brought forth to us as a carbon reduction solution and we saw an opportunity to acquire a bunch of RNG and provide it back to our clientele base,” stated Stefan Ritchie, Modern Niagara’s new business development manager. “We all have to adhere to reduction goals set by the federal government, and if we don’t, we’ll be levied with larger carbon taxes,” he concluded.
EverGen has sought to cater to the growing demand for renewable natural gas, aggressively growing its supply capabilities in recent years. In addition to the company’s ownership of Fraser Valley Biogas, Western Canada’s first RNG facility which has been in continuous operation since 2011, EverGen also manage two composting and organic processing facilities, which seek to combine anaerobic digesting and biogas upgrading technologies to produce RNG from the manure generated by local dairy farms.
More recently, EverGen Infrastructure revealed that the company had purchased a 50% stake in a portfolio of renewable natural gas development projects in Ontario, Canada from Northeast Renewables (https://ibn.fm/QZXw2). The deal, which saw EverGen pay a gross cash consideration of $1.5 million, has a targeted cumulative production capacity of approximately 1.7 million gigajoules (“GJ”) per year, with the projects set to be constructed in 2023 and 2024. Ultimately, EverGen expects the Ontario-based project to more than triple its RNG capacity to upwards of 1 million GJ per year.
EverGen CEO Chase Edgelow commented in regard to the deal: “The acquisition of Project Radius provides a foothold in Ontario, a new and strategic jurisdiction in which EverGen can continue to participate in the consolidation and growth of the RNG industry in the near-term, as well as benefit from project economics in line with or exceeding those we have seen with our initial projects.”
Canada’s historically fossil-fuel dependent industrial sector has gradually begun to embark on a transition towards renewable energy sources to both, reduce their carbon footprint whilst simultaneously, shielding their bottom-line from ever increasing carbon taxes. As a leader in the domestic RNG industry, EverGen is seeking to provide them with the sustainable infrastructure needed to fuel that change.
For more information, visit the company’s website at www.EvergenInfra.com.
NOTE TO INVESTORS: The latest news and updates relating to EVGIF are available in the company’s newsroom at https://ibn.fm/EVGIF
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