October 31 (Renewables Now) – US clean energy group NextEra Energy Inc (NYSE:NEE) is expanding its renewable natural gas assets through a USD-1.1-billion (EUR 1.10bn) agreement to acquire a portfolio of 30 operating landfill gas-to-electric facilities which are expected to become a core part of the company’s renewable fuels and potentially hydrogen strategies.
The portfolio, which is expected to fetch more than USD 220 million of adjusted EBITDA by 2025, will be acquired from funds managed by Energy Power Partners, NextEra said in its third-quarter financial results presentation published Friday.
The transaction is being carried out through NextEra’s clean energy arm, NextEra Energy Resources, and also includes the assumption of about USD 37 million in existing project finance debt.
NextEra intends to spend about USD 400 million to convert some or all of the facilities from landfill-gas-to-electricity to renewable natural gas, NextEra Energy Resources’ CEO Rebecca Kujawa commented at a post-earnings call with analysts.
“We think this is a great platform from which to grow our renewable fuel business,” Kujawa noted further.
The acquisition hinges on regulatory clearances and is set to close in early 2023.
(USD 1 = EUR 1.007)