Real estate and infrastructure-focused owner and developer CIM Group announced that it has raised $417 million to support the growth of its renewable natural gas (RNG) portfolio company, Terreva Renewables.

RNG, or biomethane, is expected to play a critical role in the transition to cleaner energy sources, particularly for sectors in which energy solutions such as wind or solar are less practical. RNG is typically produced from organic waste, such as agricultural, industrial, and household wastes, and is chemically identical to fossil-based natural gas, enabling it to support the decarbonization of hard-to-abate sectors such as road transport and heavy industry, without needing to replace existing transmission and distribution infrastructure.

CIM Group formed Terreva last year following its acquisition of MAS CanAm’s RNG development platform. Over the past year, Terreva has built several RNG facilities, including the completion of its first facility in Appleton, Wisconsin, and the commencement of operations of facilities in Pennsylvania, Illinois, and Virginia. The facilities convert landfill methane into RNG for large natural gas vehicle fleets, and, according to the company, have a projected carbon reduction equal to removing 21,600 cars from the road yearly or displacing 11.2 million gallons of gasoline.

According to a statement by CIM Group announcing the financing, the company is “tapping into the ever-increasing demand for RNG as a vital contributor to decarbonization efforts across transportation, utility and industrial applications.”

The company added that it is seeing strong regulatory support for RNG in transportation at federal and state levels, as well as and growing voluntary and regulatory demand from thermal users aiming to reduce their carbon footprints.

Avi Shemesh, Co-Founder and Principal, CIM Group, said:

“Terreva is delivering on our expectations for the platform and, alongside our co-investors, we are expanding Terreva to meet the increasing interest from communities across the country seeking its expertise to develop and operate RNG facilities.”