Green Impact Partners raises funds for carbon-negative RNG plant

Green Impact Partners Inc (CVE:GIP) has raised CAD 10 million (USD 7.6m/EUR 7m) through a private placement to fund expenditures in connection with the development of what it says will be the largest renewable natural gas (RNG) facility in North America.

GIP is the developer of the Future Energy Park, a carbon-negative project in Calgary, Alberta that will use low-grade wheat to produce RNG and ethanol. The planned complex will include the RNG and ethanol production facilities, a 30-MW cogeneration plant, anaerobic digesters, carbon capture and other infrastructure.

"This CAD 10 million will be used to help create additional value for GIP shareholders by allowing us to start earthwork activities for the Future Energy Park in the coming weeks," said CEO Jesse Douglas.

GIP noted that a portion of the raised funds will be used to cover general and administrative, as well as working capital requirements “until financial close with Amber Infrastructure occurs, anticipated in late 2023.” Earlier this year, the company announced a partnership with Amber Infrastructure Group under which the latter will invest up to CAD 545 million in exchange for a 50% interest in three projects including Future Energy Park.

As per the private placement itself, the company has placed 1 million common shares at CAD 10.00 apiece with existing shareholder Encompass Capital Advisors LLC, which now holds a stake of about 14.13% in GIP through various funds and accounts.

(CAD 1.0 = USD 0.760/EUR 0.696)

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