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Agreement includes Anaergia's sale of its Riverside development project reflecting its "capital-light" strategy, advancing the project while reducing financial exposure
Anaergia Inc. ("Anaergia", the "Company", "us", or "our") (TSX: ANRG,OTC:ANRGF) (OTCQX:ANRGF), announced today that its subsidiary has signed an agreement to advance a pivotal renewable natural gas ("RNG") infrastructure project in the City of Riverside, California. Under this agreement, and subject to certain conditions precedent to financial closing and funding, Anaergia's development-stage project asset, Riverside Bioenergy Facility, LLC ("RivBF"), will be sold to a developer with institutional investor funding. RivBF currently has a lease with the City of Riverside that provides for, upon approval of the parties, constructing organic waste-to-RNG infrastructure at the Riverside Water Quality Control Plant ("RWQCP").
Anaergia Technologies, LLC, an Anaergia affiliate, is contracted to perform engineering, procurement, and construction ("EPC") services for the RWQCP improvements after closing, with a financing commitment by the developer. The EPC services include installing Anaergia's advanced biogas conditioning and upgrading systems, organic waste feedstock processing systems, and upgrades at the RWQCP.
The majority of the EPC activities are slated to occur in 2026 and 2027, and Anaergia expects to recognize revenue of C$39 million from these activities.
The parties have also reached an agreement on operations and maintenance ("O&M") services. Under this arrangement, Anaergia Services, LLC, an affiliate of Anaergia, will provide O&M services to RivBF after the completion of EPC activities, under a long-term agreement.
These developments reflect Anaergia's commitment to its capital-light model. The approach fosters strategic partnerships, enabling more rapid adaptation and increased flexibility to meet local and regulatory objectives. By transferring project ownership to an institutional investor backed-developer, Anaergia reduces its financial exposure while ensuring the efficient deployment of its renewable energy solutions.
Assaf Onn, CEO of Anaergia, stated, "The new project is pivotal in advancing the City of Riverside's sustainability efforts by significantly decreasing the carbon footprint of its RWQCP and complying with California's SB1383 regulations for organic waste recycling. It also marks an important milestone in our commitment to providing impactful climate solutions for major organic waste producers, while aligning with Anaergia's 'capital-light' strategy."
The financial closing of the transaction is subject to satisfying certain conditions precedent, such as the execution of an amendment to the site lease agreement with the City of Riverside, receipt of applicable third-party consents and regulatory permits, and completion of certain ancillary agreements.
About City of Riverside, California
Riverside is a leading Southern California city offering a blend of hometown charm, history, and hospitality with the vision, energy, culture, and diversity of a sophisticated metropolitan area. With a population of approximately 320,000 residents, Riverside proudly holds the title of the 12th largest city in California and the 6th largest city in Southern California. Riverside serves as the economic powerhouse of one of the fastest growing regions in the United States.
For further information please see: www.riversideca.gov
About Anaergia
Anaergia is a pioneering technology company in the RNG sector, with over 250 patents dedicated to converting organic waste into sustainable solutions such as RNG, fertilizer, and water. We are committed to addressing a significant source of greenhouse gases ("GHGs") through cost-effective processes. Our proprietary technologies, combined with our engineering expertise and vast experience in facility design, construction, and operation, position Anaergia as a leader in the RNG industry. With a proven track record of delivering hundreds of innovative projects over the past decade, we are well-equipped to tackle today's critical resource recovery challenges through diverse project delivery methods. As one of the few companies worldwide offering an integrated portfolio of end-to-end solutions, we effectively combine solid waste processing, wastewater treatment, organics recovery, high-efficiency anaerobic digestion, and biomethane production. Additionally, we operate RNG facilities owned by both third parties and Anaergia. This comprehensive approach not only reduces environmental impact but also significantly lowers costs associated with waste and wastewater treatment while mitigating GHG emissions.
For further information please see: www.anaergia.com
Forward-Looking Statements
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects Anaergia's current expectations regarding future events including, but not limited to, the value of the agreements, the timing of substantial completion and EPC activities, and the timing and likelihood of financial closing of the transaction. Forward-looking information is based on a number of assumptions, including, but not limited to, counterparty contractual performance, the satisfaction of certain conditions precedent, the full development and funding of the project, and the capability of the Company's technology and performance with respect to the project objectives. The Company is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company's annual information form for the fiscal year ended December 31, 2024, and under "Risks and Uncertainties" in the Company's most recent management's discussion and analysis. Actual results could differ materially from those projected herein. Anaergia does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws. Additional information on these and other factors that could affect Anaergia's operations or financial results are included in Anaergia's reports on file with Canadian regulatory authorities.
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For media or investor relations please contact: IR@Anaergia.com
