Archaea Energy Inc., Houston, announced that its subsidiary, Archaea Infrastructure LLC, has entered into a definitive purchase and sale agreement with Riverview Investment Holdings to purchase Virginia-based NextGen Power Holdings LLC.
The acquisition—which includes NextGen Power Holding’s subsidiary Ingenco—is valuated at roughly $215 million, subject to customary adjustments at closing. The transaction is expected to close on or after July 1.
According to a release, the purchase will act as a “significant addition to Archaea’s backlog of attractive RNG (renewable natural gas) development opportunities via the acquisition of existing electricity generation assets.” Archaea will gain Ingenco’s asset platform of 14 operating landfill gas to electric (LFGTE) plants at sites that had combined gas flows into the facilities of 7 million MMBtu (metric million British Thermal Unit) in 2021.
The acquisition also will include gas rights for these sites, which have a number of long-term agreements in place. Archaea expects to build RNG facilities on the majority of these LFGTE sites over time.
In addition, the company will add approximately 70 Ingenco employees, bringing “valuable expertise to Archaea’s highly skilled and experienced team,” Archaea says.
“Today’s announcement marks a significant achievement in executing … our strategy of securing as many economically attractive RNG development opportunities as possible, building the biggest and highest quality RNG development backlog in the industry and growing the long-term earnings power of our business,” says Nick Stork, co-founder and CEO of Archaea.
“The Ingenco platform provides an opportunity set of high-quality projects for our in-house technical and project development professionals to develop and generate compelling returns by building high margin RNG facilities using our Archaea V1 plant design while also exploring opportunities to optimize the existing electricity generation infrastructure.”