Suburban Propane buys RNG assets from Equilibrium

Suburban Propane Partners LP (NYSE:SPH), a US distributor of propane and other energy products, last week said it has agreed to acquire renewable natural gas (RNG) assets from investment management firm Equilibrium Capital Group.

Through its subsidiary Suburban Renewable Energy LLC, Suburban is buying two operational biogas facilities for USD 190 million (EUR 180m). In addition, it is forming a joint venture with Equilibrium to develop additional RNG projects, including an existing pipeline.

The deal covers a large RNG facility in Stanfield, Arizona with seven anaerobic digesters, manure rights from some 55,000 dairy cattle and an interconnect with an interstate pipeline, as well as a facility in Columbus, Ohio that processed food waste into fertiliser and biogas and has a project to upgrade the biogas into RNG for use in the transportation sector. It also includes option rights for a third RNG facility in the Midwest currently being developed by Equilibrium.

The transaction complements Suburban’s work to build an RNG facility at Adirondack Farms in Peru, New York. The company said the investment advances its strategic goal of building out a renewable energy platform.

(USD 1 = EUR 0.948)

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