EverGen Infrastructure Corp. Achieves Another Milestone Signing Term Sheet for a Long Term Offtake Agreement at Fraser Valley Biogas

Rhea-AI Summary

EverGen Infrastructure Corp. has signed a term sheet for a long-term offtake agreement to sell up to 190,000 GJ of Renewable Natural Gas (RNG) annually from its Fraser Valley Biogas Facility. This agreement replaces an existing one and is timed with stronger market pricing. The agreement supports a fully funded Core RNG Expansion project, which aims to double the facility's production capacity to approximately 160,000 GJ per year. EverGen's long-term goal is to reach 1,000,000 GJ of RNG annually across its portfolio.

Positive

• Signed a new long-term offtake agreement for up to 190,000 GJ of RNG annually.
• The Core RNG Expansion project is fully funded and expected to double production capacity to approximately 160,000 GJ per year.
• Strengthened market conditions for RNG pricing enhance business opportunities.

Negative

• Existing RNG offtake agreement is nearing its end, highlighting potential operational uncertainty.

• Proposed agreement for up to 190,000 GJ of RNG annually from EverGen’s Fraser Valley Biogas Facility
• Supports fully funded Core RNG Expansion project expected to double RNG production capacity marking another step towards EverGen’s goal of 1,000,000 GJ of RNG annually

VANCOUVER, British Columbia--(BUSINESS WIRE)-- EverGen Infrastructure Corp. (“EverGen” or the “Company”) (TSXV: EVGN) (OTCQX: EVGIF), is pleased to announce that its wholly owned subsidiary Fraser Valley Biogas Ltd. (“FVB”) has signed a term sheet for a long term offtake agreement (the “Proposed Agreement”). The Proposed Agreement is expected to cover the purchase of up to 190,000 gigajoules of RNG annually from FVB, which accounts for existing and incremental RNG volumes expected from the facility post-completion of this Core RNG expansion project. This agreement would replace the existing RNG offtake agreement that is approaching the end of the original term in an environment where current market pricing is significantly stronger than when the facility originally commenced.

This milestone supports EverGen’s fully funded Core RNG expansion project at FVB expected to double the RNG production of the facility to ~160,000 GJ per year. The expansion project will commence construction later this month with anticipated completion in Q1 2023. This is another step towards EverGen’s goal of 1,000,000 GJ of RNG annually from our core RNG expansion and development project portfolio.

"This marks another key milestone for EverGen and underpins our expansion at Fraser Valley Biogas.” said Chase Edgelow, CEO of EverGen. "Our Core RNG expansion projects are fully funded to deliver RNG production of nearly half a million GJ annually, using a solution that captures greenhouse gases to supply low-carbon energy, supporting the energy transition.”

Fraser Valley Biogas, located in Abbotsford, BC, has been in operation since 2011 and is the original producing RNG project in Western Canada. The facility combines anaerobic digestion and biogas upgrading to produce RNG, primarily by converting agricultural waste from local dairy farms.

About EverGen Infrastructure Corp.

EverGen, Canada’s Renewable Natural Gas Infrastructure Platform, is combating climate change and helping communities contribute to a sustainable future. Headquartered on the West Coast of Canada, EverGen is an established independent renewable energy producer which acquires, develops, builds, owns, and operates a portfolio of Renewable Natural Gas, waste to energy, and related infrastructure projects. EverGen is focused on Canada, with continued growth expected across other regions in North America and beyond.

For more information about EverGen Infrastructure Corp. and our projects, please visit www.evergeninfra.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220927005574/en/

EverGen Investor Contact

Kelly Castledine

416-576-8158

kelly@evergeninfra.com

EverGen Media Contact

Katie Reiach

604-614-5283

katie@talkshopmedia.com

Source: EverGen Infrastructure Corp.

FAQ

What is the significance of the new offtake agreement for EVGIF?

The new offtake agreement allows EverGen to sell up to 190,000 GJ of RNG annually, enhancing revenue potential and operational stability.

When is the Core RNG Expansion project expected to be completed?

The Core RNG Expansion project is anticipated to be completed in Q1 2023.

What is EverGen’s target for RNG production annually?

EverGen aims to achieve an annual production of 1,000,000 GJ of RNG from its expansion projects.

How does the new agreement impact EverGen's business strategy?

The new agreement supports EverGen's strategy to expand its RNG production capacity and capitalize on favorable market pricing.