Ameresco and Republic Services Began Operations of a Renewable Natural Gas Plant at Republic Services’ Roxana Landfill, with an Annual Capacity of 1.4M Dekatherms

Rhea-AI Summary

Ameresco (NYSE: AMRC) and Republic Services (NYSE: RSG) announced the start of commercial operations at their joint venture landfill gas (LFG) to renewable natural gas (RNG) plant at Republic Services' Roxana Landfill in Edwardsville, Illinois. The facility, one of North America's largest, processes 6,000 SCFM of raw landfill gas and is expected to produce 1.4M Dekatherms annually.

The project will reduce CO2 emissions by over 82,000 metric tons yearly, equivalent to removing 5,000 passenger vehicles or the energy consumption of 2,500 homes. The RNG will be injected into Energy Transfer's natural gas pipeline, supporting Illinois' goal of achieving 40% renewable energy by 2030 and 100% clean energy by 2050.

Positive

• Facility is one of North America's largest RNG plants with 6,000 SCFM processing capacity
• Expected to produce 1.4M Dekatherms of RNG annually
• Ameresco owns 60% of the 15.6 MWe asset
• Marks the 14th collaboration between Ameresco and Republic Services, with 8 more projects in development

Negative

• None.

Insights

Environmental Technology Analyst

The Roxana RNG facility represents a significant advancement in waste-to-energy infrastructure. With a 6,000 SCFM processing capacity and potential to produce 1.4M dekatherms annually, this facility ranks among North America's largest. The project's ability to reduce 82,000 metric tons of CO2 emissions annually demonstrates substantial environmental impact. The facility's integration with Energy Transfer's pipeline infrastructure ensures efficient distribution and monetization of the produced RNG.

The joint venture structure between Ameresco and Republic Services, with Ameresco holding a 60% stake, creates a strong operational foundation. This project aligns perfectly with Illinois' renewable energy targets and positions both companies to capitalize on the growing demand for renewable natural gas in the transportation sector. The successful launch of this facility could serve as a blueprint for future waste-to-energy projects, particularly given the partners' pipeline of 8 additional projects in development.

Financial Analyst

This joint venture marks a strategic expansion in Ameresco's renewable natural gas portfolio, with significant revenue potential from the 1.4M dekatherms annual capacity. The 60% ownership structure provides Ameresco with majority control while sharing capital requirements with Republic Services. The project benefits from multiple revenue streams including RNG sales and environmental credits, particularly valuable in the current high-energy price environment.

The partnership model demonstrates efficient capital allocation and risk management, while the pipeline of 8 additional projects suggests strong growth potential. The facility's scale and integration with existing infrastructure should drive operational efficiency and attractive margins. Given the growing demand for renewable natural gas and supportive regulatory environment, this asset should generate stable, long-term cash flows and enhance Ameresco's recurring revenue base.

The LFG to RNG facility is estimated to reduce CO₂ emissions by over 82,000 metric tons per year

15.6 MWe asset is 60% owned by Ameresco

FRAMINGHAM, Mass. & EDWARDSVILLE, Ill.--(BUSINESS WIRE)-- Ameresco, Inc., (NYSE: AMRC), a leading cleantech integrator specializing in energy efficiency and renewable energy, today announced that its newly formed joint venture with Republic Services (NYSE: RSG), a leader in the environmental services industry, has achieved commercial operation at their landfill gas (LFG) to renewable natural gas (RNG) plant located at Republic Services’ Roxana Landfill in Edwardsville, Illinois in November.

Roxana Facility (Photo: Business Wire)

The Roxana RNG facility captures naturally occurring landfill gas and processes it into pipeline-quality RNG, a low-carbon transportation fuel. This project beneficially uses previously flared LFG to create RNG that will displace fossil fuel in a nearby Energy Transfer natural gas transmission pipeline. The facility, which is one of the largest of its type in North America, is designed to process 6,000 SCFM (standard cubic feet per minute) of raw landfill gas per minute.

It is estimated that the facility will reduce carbon dioxide emissions by more than 82,000 metric tons per year which is equivalent to the annual emissions from about 5,000 average passenger vehicles, or the energy consumption of approximately 2,500 homes. This decreases reliance on fossil fuels and advances increased environmental sustainability through the promotion of a renewable resource by extracting value from waste and transforming it into a clean energy source. The project also supports Illinois’ commitment to increasing its renewable energy portfolio – the state has committed to achieving 40% renewable energy 2030 and 100% clean energy by 2050.

“At Republic Services, our longstanding sustainability goal is to beneficially reuse 50% more biogas at our locations by 2030,” said Tim Oudman, Senior Vice President of Sustainability Innovation, Republic Services. “Through partnerships like this, we are able to reduce greenhouse gas emissions and develop a renewable resource that helps meet energy demands while protecting the environment.”

The Roxana facility also marks the 14th Republic Services and Ameresco have collaborated on a renewable energy project, with another 8 projects in various stages of development, permitting and construction.

“Today’s announcement marks a momentous occasion in Ameresco’s 22-year partnership with Republic Services. This is the first time that our firms have formed a joint venture to co-invest in a new, renewable energy facility,” said Michael Bakas, President of Renewable Fuels at Ameresco. “Republic Services and Ameresco have similar visions to create a more sustainable world. This project does just that as part of the circular economy turning waste into a reliable source of renewable energy that has a tremendous impact on our environment.”

To learn more about the energy efficiency solutions offered by Ameresco, visit www.ameresco.com/energy-efficiency/.

About Ameresco, Inc.

Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading cleantech integrator and renewable energy asset developer, owner and operator. Our comprehensive portfolio includes solutions that help customers reduce costs, decarbonize to net zero, and build energy resiliency while leveraging smart, connected technologies. From implementing energy efficiency and infrastructure upgrades to developing, constructing, and operating distributed energy resources – we are a trusted sustainability partner. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state and local governments, utilities, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in Framingham, MA, Ameresco has more than 1,500 employees providing local expertise in North America and Europe. For more information, visit www.ameresco.com.

About Republic Services

Republic Services, Inc. (NYSE: RSG) is a leader in the environmental services industry. Through its subsidiaries, the Company provides customers with the most complete set of products and services, including recycling, solid waste, special waste, hazardous waste and field services. Republic's industry-leading commitments to advance circularity and support decarbonization are helping deliver on its vision to partner with customers to create a more sustainable world. For more information, please visit RepublicServices.com.

The announcement of Ameresco’s completion of a renewable energy asset project is not necessarily indicative of the timing or amount of revenue from such arrangement, of Ameresco’s overall revenue for any particular period or of trends in Ameresco’s overall total assets in development or operation. This project was included in Ameresco’s previously reported assets in development as of September 30, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241209378399/en/

Media:

Ameresco: Leila Dillon, 508-661-2264, news@ameresco.com

Republic Services: Melissa Quillard, 602-380-9988, media@republicservices.com

Source: Ameresco, Inc.

FAQ

What is the processing capacity of Ameresco's (AMRC) Roxana RNG facility?

The Roxana RNG facility can process 6,000 SCFM (standard cubic feet per minute) of raw landfill gas per minute, making it one of the largest facilities of its type in North America.

How much CO2 emissions will Ameresco's (AMRC) Roxana facility reduce annually?

The facility will reduce carbon dioxide emissions by more than 82,000 metric tons per year, equivalent to removing about 5,000 average passenger vehicles from the road.

What is the ownership structure of Ameresco's (AMRC) Roxana RNG plant?

The 15.6 MWe Roxana RNG facility is 60% owned by Ameresco through a joint venture with Republic Services.