Under a $31 million syndicated senior term loan from Roynat Capital and Export Development Canada (EDC), Canada's EverGen Infrastructure has utilized $15 million as a portion of the loan to fund its Fraser Valley Biogas core RNG expansion project.
“We prudently structure the financing behind each of our projects to allow for flexibility and to maximize returns for our shareholders," said Chase Edgelow, CEO of EverGen.
The project's construction started in Q3 2022 with installation of an additional anaerobic digestor and improvements to the feedstock processing system. Another installation of a new RNG upgrader will double the expected production capacity of the facility to approximately 160,000 GJ of RNG per year.
While the project is 75 percent completed, EverGen expects it to be completed by Q3 2023.
Increased RNG output from second half of 2023 and improved RNG prices with a planned offtake agreement will enhance EverGen's EBITDA significantly. The project is in line with the budget with costs incurred and purchase orders issued to date for approximately 75 percent of the $11-12 million required for this project.
“EDC welcomes the opportunity to participate in EverGen’s growth and supports the Company as they expand their renewable energy infrastructure in Canada, paving the way for EverGen’s future international growth” said Guillermo Freire, Senior Vice-President at EDC.