Xebec, Fonds de solidarite FTQ create USD 14.6m fund to invest in RNG
Biogas plant. Source: EBRD (www.ebrd.com). All rights reserved.
Canadian clean energy firm Xebec Adsorption Inc (TSE:XBC) and development capital fund Fonds de solidarite FTQ on Monday said they have set up a CAD-20-million (USD 14.6m/EUR 13.1m) fund to invest in renewable natural gas (RNG) projects in Quebec.
Initially, Xebec and the Fonds will each invest CAD 10 million in the fund operating as GNR Quebec Capital LP. The partners and other investors are expected to invest CAD 100 million in equity capital in the partnership over time.
With a debt-to-equity ratio of 75/25, the fund could back 12 to 15 RNG projects in Quebec with an aggregate investment of CAD 400 million over the next ten years. The partnership will be managed by GNR Quebec Capital Management Inc.
The fund, the first of its kind in Quebec, will provide partners, from the agricultural and municipal sectors in particular, with access to capital and expertise required for the development and operation of organic waste-to-energy facilities.
"Considering that new government regulations, such as the Clean Fuels Standard, will soon come into force and that the need for a higher renewable natural gas content will increase over the next few years, particularly in the utilities sector, we are pleased to partner with the Fonds de solidarite FTQ to accelerate the deployment of renewable gas infrastructures," Xebec's CEO, Kurk Sorschak, commented.