EverGen signs LOI to acquire 67% stake in GrowTEC biogas facility in Alberta

EverGen Infrastructure Corp. (EverGen), Canada’s Renewable Natural Gas (RNG) Infrastructure Platform, has entered into a letter of intent (LOI) with Grow the Energy Circle Ltd. (GrowTEC) to acquire a 67% interest in a biogas facility in Alberta and to work with GrowTEC on developing and expanding the renewable gas output at such facility. 

GrowTEC, located on the Perry Family farm near Lethbridge, Alberta, is a multi-faceted bioenergy venture of sustainable agriculture, integrating responsible best practices and renewable energy. At the core of GrowTEC is an operating farm-scale anaerobic digester that converts biodegradable waste into biogas which is then upgraded to RNG for use in the gas grid. The Project has an offtake agreement with FortisBC and will contribute to FortisBC’s target to have at least 15% of its gas supply carbon neutral by 2030.

Under the terms of the LOI, EverGen will acquire a 67% interest in the Project either directly or through ownership in a newly formed special purpose vehicle corporation that will hold the assets of the Project, for CAD6.6 million (US$5.16 million) consisting of an initial cash consideration of CAD3.3 million (US$2.6 million) and the issuance of 600,000 common shares of EverGen with a deemed value of CAD5.50 (US$4.3) per share. In addition, GrowTEC will have the right to nominate a director to the EverGen board at closing of the Proposed Transaction. Closing of the Proposed Transaction is expected to be completed in Spring of 2022.