Acquisition will add 4bn ft3/year to Enbridge RNG production portfolio. [Image credit: Morrow Renewables]

By Dale Lunan

Canadian utility and midstream company Enbridge said November 3 it had signed a definitive agreement with Morrow Renewables to acquire seven operating landfill-to-renewable natural gas (RNG) assets in Texas and Arkansas in a transaction valued at US$1.2bn (C$1.64bn).

The RNG facilities – six in Texas and one in Arkansas – produce more than 4bn ft3/year of RNG and will generate D3 Renewable Identification Numbers (RINs), Enbridge said in its Q3 2023 financial results.

“This transaction represents a uniquely de-risked portfolio of operating and scalable RNG assets,” Enbridge CEO Greg Ebel said. “The landfill gas-to-RNG facilities…will accelerate progress toward our energy transition goals.”

The transaction is expected to close in early 2024, with approximately 60% of the consideration to be staggered over the following two years, Enbridge said. All 86 plant and field employees associated with the RNG facilities will be retained by Enbridge.

In 2022, Enbridge partnered with Stanton Farms in Ontario to launch that province’s first farm-based RNG facility, and earlier this year it earned Ontario Energy Board approval for its Ridge Landfill RNG project near Blenheim, expected to be in service by the end of 2024.

Also this year, it invested C$80mn into Divert, a US company which diverts wasted food into RNG production, and joined with Divert into a US$1bn infrastructure development agreement.