EverGen Infrastructure Corp (TSX-V:EVGN) calls itself Canada’s Renewable Natural Gas (RNG) Infrastructure Platform.
The company’s mission is to combat climate change by producing RNG and helping communities contribute to a sustainable future.
Headquartered in Vancouver, EverGen acquires, develops, builds, owns, and operates a portfolio of RNG, waste-to-energy, and related infrastructure projects.
While the company is focused on Canada, it expects continued growth across other regions in North America and beyond.
EverGen CEO Chase Edgelow recently discussed the company's ongoing operations and plans for 2022 with Proactive.
Proactive: EverGen recently listed in the US on the OTCQB in New York. How significant is this move as the company expands its RNG Infrastructure Platform in Canada?
Chase Edgelow: This is set to be a transformational year for EverGen. With long-term contracted RNG expansion projects positively contributing to our financial performance and acquisition opportunities across Canada, this is an ideal time to list in the US. A listing provides broader access for investors looking to participate in the early stages of what is expected to be an industry that will see similar growth to that of the wind and solar sector that build a number of multi-billion dollar renewable power companies (IPPs). The listing will provide US investors with an accessible and transparent trading platform to invest in EverGen as we continue to work to close the gap in renewable energy infrastructure in North America.
The company’s Sea to Sky Soils facility processed 160% of its budgeted tonnage in the second half of 2021. What are the company’s plans to build on this momentum and expand processing even further in 2022?
We are currently working with the British Columbia Ministry of Environment to expand our operational capacity in 2022 to 60,000 tonnes per year. This will allow further processing of organic waste that is turned into valuable compost and soils for organic farms, businesses, and residents from North Vancouver to Pemberton. It also sets the stage for future potential RNG development at the site.
EverGen also has two other facilities in British Columbia. What are the status of operations at Fraser Valley and the Abbotsford facility where the company has a 20-year off-take agreement with FortisBC?
Fraser Valley Biogas was the original RNG producing facility in Western Canada and has been in production for over ten years. The facility combines anaerobic digesting and biogas upgrading technologies to produce RNG from organic waste, which is then sold to FortisBC under a long-term contract. EverGen’s wholly-owned subsidiary Net Zero Waste Abbotsford Inc is also about to break ground on an expansion project with a 20-year offtake agreement whereby FortisBC will purchase up to 173,000 gigajoules of RNG annually for injection into its natural gas system. This project will convert municipal and commercial organic waste into enough energy to meet the needs of approximately 1,900 residential homes.
The company naturally fits the ESG profile for sustainable investment. On the social side, how important is EverGen’s working partnership with the Lil’wat Nation to the company’s growth and success?
Our focus is to support reconciliation, which often involves supporting economic sovereignty through partnerships and job creation. At our Sea to Sky Soils project in Pemberton, we have a long-term partnership with the Lil’wat Nation as one of the largest employers in the community, and we operate on leased land providing long-term economic benefits. It is a true win-win relationship that we will foster well into the future and look to replicate in future projects. We are committed to a dedicated workforce that's over 80% Indigenous and work with the Squamish and Lil’Wat nation to provide job training and growth opportunities that offer a positive impact on the environment.
You predict that 2022 will be a transformational year for EverGen as it journeys to compete on the global RNG stage to combat climate change with a carbon-free future. That said, what is the outlook and strategy for the remainder of the year?
We have big plans this year as we assess new projects across the country where we see an opportunity to replicate what has been successful with our existing assets. A perfect example is our recent announcement about our planned interest in a 140,000 GJ (gigajoules) per year project in Alberta – this will be a cornerstone project for EverGen as we develop a community partnership and leverage our footprint for additional growth and expansion opportunities in the province. We are looking at a number of similar opportunities to grow throughout Canada, particularly in the Ontario and Quebec markets which are very supportive of the future of RNG.
And going forward, what is the company’s message to shareholders and investors?
This year will be a transformative year for EverGen. In 2020, we established the company to address a gap in the market where we saw the need for a reliable RNG infrastructure platform that would contribute to the reduction of GHG (Greenhouse Gas) emissions and be part of the circular economy. In 2021, we raised capital and successfully completed our IPO, setting the stage for 2022. We have several fully-funded expansion projects this year that will take our EBITDA from around a $3 million annual run-rate to around $12 million without raising additional capital. Our M&A team is very active and is evaluating multiple opportunities for consolidation in the space, with an aim to grow our platform to over 1,000,000 GJ per year through 2024.
Contact the author: patrick@proactiveinvestors.com
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