The partners and the other investors are expected to invest CAD100m ($73.1m) in equity capital in the partnership over time
Canadia-based clean energy solutions provider, Xebec Adsorption and Fonds de solidarité FTQ have launched an investment fund to increase renewable natural gas production in Québec.
Initially, each company is set to invest CAD10m ($7.3m) in the fund, which will be operated under the name of GNR Quebec Capital.
Additionally, the partners and the other investors are expected to invest CAD100m ($73.1m) in equity capital in the partnership over time.
With a debt to equity ratio of 75:25, the fund is expected support 12 to 15 renewable natural gas projects in Quebec with an aggregate investment of CAD400m ($292.6m) over the next ten years.
The general partner, GNR Quebec Capital Management, will be overseen by a board of directors nominated by Xebec, while Fonds will manage the partnership.
The fund will provide partners from the agricultural and municipal sectors with access to capital
Fonds de solidarité FTQ Structuring Capital, Energy and Environment Investments vice president Dany Pelletier said: “Renewable natural gas can accelerate the decarbonization of sectors such as transportation, home heating and industry, by supporting the circular economy through organic waste responsive management activities.
“This initiative also meets the Fonds’ objectives for a just energy transition by creating jobs and supporting local economies with additional revenue streams for farmers, municipalities, and industry.”
The funding will provide partners particularly from the agricultural and municipal sectors, with access to capital and expertise that is required for the development and operation of the facilities to treat organic waste.
In February this year, Xebec Adsorption signed an agreement with Bähler Biogas to develop an integrated facility to process various organic wastes for the production of renewable natural gas (RNG) and biofertilizer in Canada.