IFM Investors buys stake in GreenGasUSA

Oksana Patron

2 February 2023

IFM Investors Net Zero Infrastructure Fund (NZIF) has bought a majority interest in South Carolina-based renewable natural gas (RNG) developer and operator, GreenGasUSA.

The acquisition, which is NZIF’s first investment in its core target sector which is the low carbon fuels sector, is expected to expand the company’s footprint of RNG projects and help deliver on its mission to help food processors, farmers and industrial manufacturers capture greenhouse gas emissions from their operations.

IFM NZIF, which was launched only last year, is an open-ended fund targeting essential infrastructure assets seeking to accelerate transition to a net-zero emissions economy.

GreenGas is a fully integrated renewables platform headquartered in Charleston with a track record of originating, developing and operating RNG projects while utilising mature technologies to capture, purify and transport biogas from existing organic waste streams for its end use as pipeline quality RNG.

GreenGas also sells the RNG and associated environmental attributes under long-term offtake contracts with investment grade commercial and industrial customers, such as Mercedes-Benz, Berkshire Hathaway Energy and Duke University, the firm said.

Under the terms of the deal, GreenGas’ chief executive and founder, Marc Fetten, would continue to lead the firm alongside the existing management team.

“We are excited to welcome GreenGas into the IFM NZIF portfolio and support its next phase of growth,” Kyle Mangini, Global Head of Infrastructure at IFM Investors, said.

“RNG projects operated by GreenGas can deliver significant emissions reductions, which is well aligned with IFM’s net zero commitments and our purpose to protect & grow the long-term retirement savings of working people.”

Transaction close is targeted for Q1 2023 and subject to customary closing conditions and regulatory approvals.

Marathon Capital, LLC acted as exclusive financial adviser to GreenGas on the transaction.