The acquisition of Toronto-based StormFisher—which builds, owns, and operates projects in North America that turn food or agricultural byproducts into natural gas and electricity—enables Greenhouse Gas Services to grow in markets outside the US and particularly where governments support renewable energy, such as Ontario.
In the transaction, Denham Capital, an energy and commodities-focused private equity firm, becomes an investor in Greenhouse Gas Services by exchanging its stake in StormFisher for ownership in Greenhouse Gas Services. Greenhouse Gas Services will retain the StormFisher brand as its biogas business line.
Mauricio Vargas, CEO of Greenhouse Gas Services, said: “Adding the StormFisher team and its pipeline of shovel-ready biogas projects expands Greenhouse Gas Services’ business line and complements our carbon platform. As carbon and renewable energy policies continue to evolve, we see tremendous opportunity and growth for us in North America.”
Bas Berkel, president of StormFisher, said: “This deal brings together StormFisher’s project development expertise and pipeline of new opportunities with the carbon credit specialization of Greenhouse Gas Services.It represents the combination of two very entrepreneurial firms with the backing of multi-billion dollar companies.”
Greenhouse Gas said that this year the company will start its first biogas project, a 2.8MW facility in London, Ontario that will convert more than 100,000 tonnes of organic materials from agri-food producers into renewable energy through a process known as anaerobic digestion. Electricity produced at the London biogas plant will be sold to the Ontario Power Authority.
Greenhouse Gas Services is currently developing other biogas facilities in Ontario, Wisconsin and California, which are expected to start operation by the end of 2011.
