EverGen Infrastructure provides construction update at Fraser Valley Biogas
Published by Jessica Casey,
Editor
Energy Global,
EverGen Infrastructure Corp. has announced the successful drawdown of CAN$15 million under the first tranche of the previously announced CAN$31 million syndicated senior term loan (the facility), from Roynat Capital and Export Development Canada (EDC), providing EverGen with financial certainty to fund the Fraser Valley Biogas core RNG expansion project currently under construction.
“This marks the final stage of construction of our core RNG expansion project at Fraser Valley Biogas, which will be completed in 3Q23,” said Chase Edgelow, CEO of EverGen. “We prudently structure the financing behind each of our projects to allow for flexibility and to maximise returns for our shareholders.”
“EDC welcomes the opportunity to participate in EverGen’s growth and supports the company as they expand their renewable energy infrastructure in Canada, paving the way for EverGen’s future international growth,” said Guillermo Freire, Senior Vice-President at EDC.
Fraser Valley Biogas core RNG expansion project update
EverGen’s Fraser Valley Biogas core RNG expansion project commenced construction in 3Q22, including the installation of an additional anaerobic digestor, improvements to the feedstock processing system and installation of a new RNG upgrader that will double the expected production capacity of the facility to ~160 000 GJ/yr of RNG.
EverGen has reached the 75% completion milestone, with all major piping and equipment fabrication, site preparation and civil work substantially complete, including the replacement of original agitation equipment in Digestors 1 and 2, and equipment setting and site mechanical work well underway. EverGen expects to set and tie in equipment modules, interconnecting piping and electrical in the coming weeks, on track for scheduled completion in 3Q23. The project remains on-budget with costs incurred and purchase orders issued to date for approximately 75% of the CAN$11 – US$12 million required for this project.
The project is expected to provide a significant increase to EBITDA with RNG output increasing to the expanded capacity beginning in 2H23 and improvements in RNG pricing upon the execution of a new long term offtake agreement (in connection with completion of the project).
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Read the article online at: https://www.energyglobal.com/bioenergy/03072023/evergen-infrastructure-provides-construction-update-at-fraser-valley-biogas/
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