RNG producer EverGen posts Q3 loss
SUMMARY
Company is encouraged by strong RNG market and core expansion plans.
By Dale LunanVancouver-based renewable natural gas (RNG) producer EverGen Infrastructure said November 21 it had Q3 2022 revenue in line with a year ago but a net loss of C$1.8mn (US$1.3mn) as it was buffered by costs associated with widespread flooding in the Lower Fraser Valley a year ago.
Downtime associated with the flooding reduced RNG production in Q3 2022 to 14,975 GJ from 23,854 GJ in Q3 2021.
The company remains encouraged by strong momentum in the North American RNG market and its future prospects on the heels of its acquisition in July of a 67% interest in Alberta’s Grow the Energy Circle (GrowTEC) and the nearing completion of GrowTEC’s 80,000 GJ/year first phase RNG production facility near Lethbridge.
The facility is 80% complete, EverGen said, and commissioning is expected before the end of this year. GrowTEC and EverGen will then move into the second phase of the project, which will add another 60,000 GJ/year of production capacity.
EverGen also began construction in Q3 on an expansion at its Fraser Valley Biogas project, for which it signed a long-term offtake agreement in July for up to 190,000 GJ/year.
“We are thrilled with the progress at our core RNG expansion projects that once producing, will see us jump from C$3mn to C$13mn in run rate EBITDA and are fully funded,” CEO Chase Edgelow said. “With our GrowTEC facility commissioning imminently and construction at Fraser Valley Biogas underway we are anticipating a strong start to 2023.”
