The assets, acquired from the owners of Energy Power Partners Fund I and North American Sustainable Energy Fund, are expected to expand the company’s portfolio of renewable natural gas assets and its in-house capabilities
NextEra to expand its RNG portfolio. (Credit: Robin Sommer on Unsplash)
NextEra Energy Resources has announced the signing of agreements to acquire a large portfolio of operating landfill gas-to-electric facilities.
The company is acquiring the assets from the owners of Energy Power Partners Fund I LP and North American Sustainable Energy Fund LP in a $1.1bn deal plus debt.
Through the acquisitions, NextEra intends to expand its portfolio of renewable natural gas (RNG) assets and its capabilities in the growing renewables market.
The acquisition, which includes around $37m project finance debt, is expected to close in early 2023, subject to regulatory approvals.
NextEra Energy CEO John Ketchum, in its third-quarter 2022 earnings release, said: “This acquisition supports our renewable fuels strategy and our broader vision to lead the decarbonisation of the US economy.
“We are as confident as ever about our long-term growth prospects, and we will be disappointed if we are not able to deliver financial results at or near the top end of our adjusted earnings per share expectations ranges for 2022 through 2025, while at the same time maintaining our strong balance sheet and credit rating.”
In addition to the acquisition, the company intends to spend around $400m to convert the portfolio of landfill gas-to-electric projects and assets to renewable natural gas (RNG), and create a services company.
NextEra said the acquired portfolio is expected to deliver more than $220m of adjusted EBITDA by 2025.
The company aims to invest around $85bn to $95bn between 2022 and 2025 and has also signed about 2,345MWh of new renewables and storage projects in the third quarter.
Its third-quarter net income has been increased to $1.7bn, from about $1.5m for the previous year, said NextEra Energy.
NextEra Energy CFO Kirk Crews said: “We are particularly excited about additional upside opportunities the portfolio may enable that are not included in our base case and look forward to potentially deploying additional capital in new ventures that may qualify for new federal incentives.”