Fortistar has partnered with Ares Capital to acquire two landfill renewable natural gas (RNG) facilities, Greentree Landfill Gas and Imperial Landfill Gas from EDF Renewables North America, for an undisclosed amount.
Fortistar said that the two facilities have the potential of producing 1.5 million decatherms of RNG per year, which is enough to power 1,117 natural gas trucks and displace 12 million Gasoline Gallon Equivalent (GGE) of diesel fuel.
As per the company, the RNG extracted from the landfills is carbon-neutral and is chemically identical to natural gas, which can be used an alternate transportation fuel to power vehicles and trucks running on natural gas.
Fortistar CEO and TruStar Energy chairman Mark Comora said: “The acquisition of these two landfill gas projects is another milepost in our plan to sustainably expand and decarbonize America’s transportation fuel supply.
“We are closing the RNG supply loop as a uniquely vertically integrated company, extracting it from landfills and moving it into renewable natural gas vehicles and trucks.”
The deal is the next step in the company’s renewable natural gas development program that was announced a year ago.
Ares Capital infrastructure and power partner Brian O’Connor said: “By converting organic waste into renewable natural gas for productive end-use, these RNG facilities will be beneficial to local communities, the transportation industry and the environment.
“This transaction is consistent with the Ares Infrastructure and Power team’s strategy of targeting new, environmentally-compliant assets and creating value for our investors through our hands-on operations expertise within the power generation, transmission and midstream sectors.”
Headquartered in White Plains, New York, Fortistar is a private investment and energy asset management firm focused on lower carbon energy generation. It owns and operates lower carbon energy generating companies in the US and Canada.