EverGen Infrastructure Corp (TSX-V:EVGN) told investors that its Fraser Valley Biogas (FVB) RNG expansion project, which is in the city of Abbotsford in British Columbia, is on track and in the final stage of construction.
Headquartered on the west coast of Canada, EverGen, an established independent renewable energy producer, disclosed the successful drawdown of $15 million under the first tranche of the previously announced $31 million syndicated senior term loan, from Roynat Capital and Export Development Canada (EDC), providing EverGen with the financial muscle to fund the FVB core RNG expansion project currently under construction.
“This marks the final stage of construction of our core RNG expansion project at Fraser Valley Biogas, which will be completed in the third quarter of 2023,” EverGen CEO Chase Edgelow said in a statement.
“We prudently structure the financing behind each of our projects to allow for flexibility and to maximize returns for our shareholders.”
Meanwhile, Guillermo Freire, who is the senior vice president at EDC, noted that Canada's export credit agency “welcomes the opportunity” to participate in EverGen’s growth.
“(We) support the company as they expand their renewable energy infrastructure in Canada, paving the way for EverGen’s future international growth,” said Freire.
Marks 75% completion milestone
The company kicked off construction on the FVB core RNG expansion project in the third quarter of 2022 with the installation of an additional anaerobic digestor, improvements to the feedstock processing system and installation of a new RNG upgrader that will double the expected production capacity of the facility by nearly 160,000 gigajoules of RNG per year.
EverGen said it has reached the 75% completion milestone, with all major piping and equipment fabrication, site preparation and civil work substantially complete, including the replacement of original agitation equipment in Digestors 1 and 2, and equipment setting and site mechanical work well underway.
EverGen expects to set and tie in equipment modules, interconnecting piping and electrical in the coming weeks, on track for scheduled completion in 3Q 2023. The project remains on budget with costs incurred and purchase orders issued to date for approximately 75% of the $11-to-12 million required for the project.
The company told investors it expects the project to provide a “significant increase” to earnings before interest, taxes, depreciation and amortization (EBITDA) with RNG output increasing to the expanded capacity beginning in the second half of 2023, and improvements in RNG pricing upon the execution of a new long-term offtake agreement in connection with completion of the project.
EverGen is an independent renewable energy producer which acquires, develops, builds, owns, and operates a portfolio of renewable natural gas, waste-to-energy, and related infrastructure projects.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive