Biogas producers Amp Americas and BerQ RNG are up for sale – Sources: Reuters


© Reuters. FILE PHOTO: Biogas, methane gas collected from dairy farms, is piped to a cleaning facility in Bexley, California, U.S. October 2, 2019. Photo taken October 2, 2019. REUTERS/ Mike Blake / File Photo

Written by Isla Penny and David French

NEW YORK (Reuters) – The owners of two North American renewable energy producers have put the products up for sale after new U.S. tax incentives and recent big investments in the sector give hope they can fetch top dollar, people familiar with the matter said. He said it.

While the price of compressed natural gas remains much higher than conventional natural gas, more energy companies and investment firms are betting that the global drive to reduce carbon emissions, along with financial support from governments, will give the industry a greater share of energy consumption.

In the wake of the British oil major (NYSE: Plc) agreeing to a $4.1 billion deal last month to buy US-based Archaea Energy, smaller peers Amp Americas and BerQ RNG are working with investment banks to market themselves to potential buyers.

The sources said Amp Americas, which is owned by investors including Houston-based buyout firm EIV Capital and infrastructure-focused Generate Capital, is seeking a valuation of about $1 billion, including debt. It was not immediately clear what valuation BerQ RNG, in which Starwood Energy Group acquired a majority stake last year, is expected to achieve.

The sources asked not to be identified because it is a matter of confidentiality. Amp Americas, BerQ RNG, EIV, Generate and Starwood did not respond to requests for comment

CNG, also known as biogas, is captured from organic waste on farms and landfills. Developers hope it will replace some of the planet-warming sources currently used to power vehicles, cook food and heat buildings, a necessary step if society is to avoid the increasingly stark impacts of climate change.

US President Joe Biden gave the sector a boost with the Inflation Reduction Act (IRA) in August. The legislation includes tax breaks for companies that make machines to capture these emissions, then convert them into natural gas, electricity and heat.

Chicago-based Amp Americas builds and operates facilities to capture and compress methane on dairy farms for injection into fuel pipelines, and provides services to other developers.

Most of the projects BerQ RNG has worked on in the US and Canada since its founding in 2016 use animal, food and landfill waste as their source.