All financial information in Canadian dollars
- Business update: Since going public last year, organics recycler and renewable natural gas producer Anaergia remains in expansion mode with multiple upcoming projects. “We are continuing to do exactly what we said we would do. We are building the plants. We are positioning ourselves for major growth,” said CEO Andrew Benedek during an Aug. 16 earnings call. “And we are benefiting from what we hoped the governments would be doing [by] providing further incentives. On top of that, the gas price increase is an unexpected but favorable win that should be helping us as we go forward.”
- U.S. presence: Anaergia’s U.S. revenues were nearly $14.82 million for the first six months of the year, representing 19% of its overall business. Anaergia also has a global presence, as seen with recent announcements about new or expanding projects in countries such as Canada, Denmark, Italy, Japan and Singapore.
- California RNG: The company’s large Rialto anaerobic digestion facility continues to ramp up volumes as the state’s SB 1383 organics diversion mandate kicks in. The adoption of another law requiring utilities to procure locally-generated RNG, SB 1440, is also a benefit. Anaergia expects to begin selling RNG from the Rialto facility during the fourth quarter after final registration through the federal Renewable Fuel Standard and state Low Carbon Fuel Standard programs. RNG from the company’s SoCal Biomethane operation, located at a wastewater treatment facility in Victorville, is also still being stored.
- California expansion: Installation of the company’s second OREX system (an extrusion press for processing organic waste) at a Universal Waste Systems facility in Los Angeles is set for completion this fall. This will be Anaergia’s second OREX servicing the city’s commercial waste franchise system (following an existing installation with WM) and a third is anticipated in 2023. The company said these systems could process enough feedstock to “oversupply” the Rialto site.
- Other U.S. projects: Earlier this month, Anaergia signed an agreement for preferred equity financing to fund upgrades at two digesters in Charlotte, North Carolina, and Johnston, Rhode Island, that it acquired from Orbit Energy last year. Development work for a potential facility in Kent County, Michigan, is alsio ongoing, as are other unspecified North American projects.
- Federal boost: Benedek previously applauded the passage of the Inflation Reduction Act, given the inclusion of an investment tax credit for biogas projects, and the company said this will be complementary to existing California policy drivers. “What it really does is it expands the opportunity set of projects that might have not had sufficient scale otherwise,” said Chief Operating Officer Yaniv Scherson. “The ITC is a boost to the projects that we're currently developing, but what we can do now is expand and pursue opportunities that may be of a smaller scale or a lower tip fee structure because the ITC would enable the return threshold to be met.”