EverGen Infrastructure Corp (TSX-V:EVGN) said its wholly owned subsidiary Fraser Valley Biogas Ltd. has signed a term sheet for a long-term offtake agreement.
The agreement is expected to cover the purchase of up to 190,000 gigajoules (GJ) of RNG (renewable natural gas) annually from Fraser Valley which accounts for existing and incremental RNG volumes expected from the facility after the completion of EverGen’s Core RNG expansion project.
"This marks another key milestone for EverGen and underpins our expansion at Fraser Valley Biogas," Chase Edgelow, CEO of EverGen said in a statement. "Our Core RNG expansion projects are fully funded to deliver RNG production of nearly half a million GJ annually, using a solution that captures greenhouse gases to supply low-carbon energy, supporting the energy transition."
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The agreement would replace the existing offtake agreement that is nearing the end of the original term in an environment where current market pricing is significantly stronger than when the facility originally started.
This milestone supports EverGen's fully funded Core RNG expansion project at Fraser Valley which is expected to double the RNG production of the facility to around 160,000 GJ per year.
The expansion project will commence construction later this month with anticipated completion in Q1 2023.
EverGen, Canada's renewable natural gas infrastructure platform, is combating climate change and helping communities contribute to a sustainable future.
Contact the author at jon.hopkins@proactiveinvestors.com