EverGen Infrastructure Corp. Signs 10-Year Agreement with Irving Oil for Renewable Natural Gas Supply
EverGen Infrastructure Corp. (TSXV: EVGN) (OTCQX: EVGIF) has announced a 10-year offtake agreement with Irving Oil Limited for the supply of renewable natural gas (RNG) produced at the Grow the Energy Circle Ltd. facility (GrowTEC). The agreement ensures the purchase of up to 60,000 gigajoules (GJ) of RNG annually, fully contracting GrowTEC's expected RNG production volumes for both phases of the expansion project. With Phase 1 of the RNG expansion project completed, EverGen plans to continue developing the facility by adding preprocessing and depackaging equipment to broaden the range of organic waste processed and expanding RNG capacity. The Perry Family Farm near Lethbridge, Alberta, hosts GrowTEC, an operating farm-scale RNG facility that has been generating renewable power from organic waste for over nine years. EverGen acquired a 67% interest in GrowTEC in July 2022.
Securing Offtake Partners
The agreement with Irving Oil, along with the existing offtake agreement with FortisBC Energy Inc., solidifies EverGen's offtake partnerships for the GrowTEC expansion project. This ensures a stable market for the produced RNG and supports the company's commitment to renewable energy production.
Continued Growth and Expansion
With Phase 2 of the expansion project expected to increase production capacity to 140,000 GJ of RNG annually, EverGen is focused on further developing the GrowTEC facility. The addition of a third anaerobic digestor and the expansion of RNG capacity will enable the facility to process a broader range of organic waste, contributing to increased renewable energy production.
In conclusion, the 10-year offtake agreement with Irving Oil marks a significant milestone for EverGen Infrastructure Corp. and the GrowTEC facility. With fully contracted RNG production volumes and ongoing expansion plans, EverGen is well-positioned to continue its commitment to renewable natural gas production and contribute to a sustainable future.
Implications of EverGen's Agreement with Irving Oil on New Businesses
EverGen Infrastructure Corp.'s 10-year agreement with Irving Oil for the supply of renewable natural gas (RNG) from the GrowTEC facility presents a compelling case study for new businesses in the renewable energy sector. This "hot take" explores the potential impacts of such a strategic partnership.
Value of Strategic Partnerships
The agreement with Irving Oil, coupled with EverGen's existing offtake agreement with FortisBC Energy Inc., underscores the importance of securing strategic partnerships for new businesses. These partnerships not only provide a stable market for the product but also reinforce the company's commitment to renewable energy, enhancing its reputation in the industry.
Emphasis on Growth and Expansion
EverGen's ongoing expansion plans for the GrowTEC facility, including the addition of preprocessing and depackaging equipment and a third anaerobic digestor, highlight the need for continuous growth and innovation. New businesses should take note of this approach, as it can help them stay competitive and meet increasing demand for renewable energy.
In conclusion, EverGen's 10-year offtake agreement with Irving Oil offers valuable insights for new businesses in the renewable energy sector. By securing strategic partnerships and focusing on continuous growth and innovation, new businesses can position themselves for success in this rapidly evolving industry.