Ontario Teachers’ Pension Plan will buy a majority stake in a US company that produces renewable natural gas from cow waste.
(Bloomberg) — Ontario Teachers’ Pension Plan will buy a majority stake in a US company that produces renewable natural gas from cow waste.
The pension plan will make a capital commitment of $250 million to the firm, Sevana Bioenergy LLC, to finance renewable gas projects across North America, according to a statement Tuesday.
Renewable natural gas, or RNG, is mostly made of methane, a potent contributor to climate change that’s typically released from the decomposition of organic material in farms and landfills. Sevana captures and processes it to generate energy that has a lower overall climate impact than if methane was allowed to simply vent into the atmosphere.
Renewable natural gas is used by utilities and, in some cases, to fuel commercial vehicles that are powered by natural gas. Energy producers including BP Plc and Shell Plc have made big-ticket investments in biogas as a way to lower their emissions footprint.
“Sevana has a demonstrated track record of success in the implementation of cutting-edge RNG facilities, and we are excited by the opportunity to further scale the company as it enters its next chapter of growth,” Zvi Orvitz, senior managing director for Teachers’ sustainability and transition business, said in the statement.
Sevana has started projects across agricultural regions such as Oregon, Idaho and South Dakota since its founding in 2017. Ontario Teachers’ Pension has committed to achieve net zero greenhouse gas emissions by 2050.
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