EverGen Infrastructure Corp (TSX-V:EVGN). said the British Columbia Utilities Commission (BCUC) has approved the RNG offtake agreement with FortisBC Energy Inc. at its Net Zero Waste Abbotsford composting and organic processing facility.
Specifically, the offtake agreement involves EverGen’s anaerobic digester expansion project at the facility, which is operated by the company’s wholly owned subsidiary Net Zero Waste Abbotsford Inc. (NZWA).
Under the 20-year agreement, EverGen said FortisBC will purchase up to 173,000 gigajoules of RNG (renewable natural gas) annually for injection into its natural gas system. The project is expected to convert municipal and commercial organic waste into enough energy to meet the needs of about 1,900 residential homes.
READ: EverGen Infrastructure brings in total gross proceeds of over C$20.1M after partial exercise of over-allotment
EverGen added that this marks the final regulatory step with respect to the NZWA offtake agreement. Upon completion of NZWA project development and construction activities, the company expects to begin supplying RNG from the project to FortisBC’s network by early 2023.
“The approval of the RNG offtake agreement for our anerobic digester project by BCUC marks an important milestone for the NZWA expansion project and moves the facility one step closer to having an even greater positive impact on our environment and reducing the negative effects of climate change,” said EverGen co-Founder and CEO Chase Edgelow in a statement.
“Not only does our renewable natural gas platform and this project provide a positive solution and the highest end-use for organic waste in the Lower Mainland region, it is also contributing to the use of carbon-neutral renewable fuel sources and captures emissions that would otherwise be released into the environment.”
RNG is a carbon-neutral energy made from decomposing organic waste. It displaces conventional natural gas in existing natural gas lines, thereby reducing the emissions from the natural gas system.
EverGen said increasing the amount of renewable gas in FortisBC’s system is key to the organization achieving its 30BY30 target – an ambitious goal to reduce its customers’ greenhouse gas emissions by 30% by 2030.
It noted that FortisBC’s 30BY30 target is among the most ambitious emissions reductions targets in the Canadian utility sector and its renewable gas targets align with the provincial government's goals in its CleanBC plan.
"Renewable Natural Gas is key to a lower carbon future for BC, capturing methane that would otherwise escape into the atmosphere and repurposing it as carbon neutral energy in our existing natural gas system," said Scott Gramm, manager of renewable gas supply with FortisBC. "Adding new RNG supply is crucial in lowering provincial emissions and we're happy to welcome EverGen to our list of RNG suppliers who are helping make that possible."
Director of investor communications named
Meanwhile, EverGen has hired industry veteran Kelly Castledine as director of investor communications.
The company said Castledine is an accomplished certified investor relations professional with over 20 years of experience in investor relations, capital markets, corporate strategy, and communications, and was the key driver of an investor relations strategy that contributed to the growth of renewable infrastructure company Algonquin Power & Utilities Corp (TSX:AQN). from $200 million to $2.5 billion market capitalization in five years.
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