EverGen Infrastructure Corp has reached a significant milestone in its ongoing effort to expand the Fraser Valley Biogas RNG Expansion Project. The company announced the mechanical completion of the project, which is set to double the facility's processing and recovery capacity of renewable natural gas (RNG) to approximately 160,000 gigajoules per year.
The expansion project, which began construction in the third quarter of 2022, encompasses various key improvements. These improvements include enhancements to the feedstock processing system, the installation of a new RNG upgrader, and the commissioning of a third anaerobic digester. The objectives of this expansion are to eliminate processing bottlenecks, enhance flood protection, improve environmental controls, and bolster operational reliability.
Mischa Zajtmann, CEO of EverGen, expressed his satisfaction with the progress, stating, “We are very pleased to announce the significant milestone of the Fraser Valley Biogas RNG Expansion Project reaching mechanical completion for EverGen's second RNG expansion project.” He further elaborated on the company's future plans, noting that the project team will now focus on installing the new control system and commissioning the facility expansion. The company anticipates RNG production from the new upgrader to commence in December 2023.
In addition to the environmental benefits of this expansion, the Fraser Valley Biogas RNG Expansion Project is expected to have a positive impact on EverGen's financial performance. Significant increases in revenue, net income, and EBITDA are anticipated, driven by the higher RNG production and improvements in RNG pricing. These financial gains are expected to materialize upon the execution of a new long-term offtake agreement.
The project remains on-budget, with an estimated total cost of approximately $12 million, further underscoring EverGen's commitment to responsible and efficient infrastructure development.