Energy solutions provider Ameresco and sustainable infrastructure investor HA Sustainable Infrastructure Capital (HASI) announced the launch of Neogenyx Fuels, a new joint venture aimed at accelerating the development of advanced biofuels and renewable natural gas (RNG) projects.
The companies said that Neogenyx Fuels is expected to become one of the largest biogas project developers in the U.S. upon closing.
RNG, or biomethane, is 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.
According to the companies, the launch of Neogenyx comes as the RNG market experiences strong growth, supported by the rising global demand for low-carbon energy sources and an increased emphasis on domestic energy supplies and drop-in fuel solutions.
Jeffrey A. Lipson, HASI President and Chief Executive Officer said:
“HASI is excited to deepen its relationship with Ameresco, which has been an outstanding partner across more than 60 joint transactions in multiple asset classes since 2001. As we expect continued growth in the RNG market, we are confident in deploying capital with a best-in-class operator, enabling us to create a valuable enterprise.”
Under the agreement, Ameresco will contribute its biofuels business, while HASI will commit to invest $400 million, including $300 million to be invested in the new platform to drive business growth, and $100 million in direct compensation to Ameresco for the existing business.
According to the companies, the transaction represents a $1.8 billion post-money enterprise value for the new platform. Ameresco will hold a 70% stake in the venture, with HASI owning the remaining 30%.
George P. Sakellaris, Chief Executive Officer of Ameresco, said:
“Ameresco has been a leader in the biofuels industry for the last twenty-five years, turning the beneficial use of biogas into a reliable low-carbon fuel source. By enhancing the business through strategic focus and HASI’s expansive capital resources, Neogenyx Fuels will be positioned to scale faster and deliver a greater impact in this fast-growing market.
The new platform will be led by Michael Bakas as CEO. Bakas has worked at Ameresco for over 25 year, and currently serves as President of Renewable Fuels.
Bakas said:
“Neogenyx Fuels will represent a next-generation platform for advanced biofuels, delivering resilient energy supply today, while building the foundation for tomorrow’s drop-in fuels, molecular products and chemicals, and other low-carbon solutions.”
