The new facility, planned for the Riverside Water Quality Control Plant, is poised to help the city meet crucial environmental goals.
Anaergia Inc. is advancing a pivotal renewable natural gas (RNG) infrastructure project in Riverside, California, by selling its development-stage asset, Riverside Bioenergy Facility, LLC, to a developer with institutional funding. This strategic transaction, which secures the project's financing, allows Anaergia to focus on its role as a key technology provider and long-term service contractor.
Despite selling the asset, Anaergia will remain at the heart of the project. Its affiliate, Anaergia Technologies, LLC, has been contracted to provide engineering, procurement, and construction (EPC) services. These services are crucial for installing the facility's advanced systems, including Anaergia’s proprietary biogas conditioning and upgrading technology, as well as the organic waste processing systems. The majority of these activities are scheduled to take place in 2026 and 2027, and the company expects to recognize approximately C$39 million in revenue from this phase of the project.
Furthermore, following the completion of construction, Anaergia Services, LLC, will enter into a long-term agreement to provide operations and maintenance (O&M) services. This arrangement ensures that Anaergia will be involved with the facility for years to come, securing a stable source of recurring revenue and maintaining quality control over its technology.
The new infrastructure is designed to transform organic waste from the City of Riverside into renewable natural gas. This process will significantly reduce the carbon footprint of the city’s water treatment plant and help Riverside comply with California's strict SB 1383 regulations. The law mandates a 75% reduction in the amount of organic waste sent to landfills by 2025. By providing a solution for organic waste recycling, Anaergia is helping a major Southern California city meet its legal and environmental obligations. With a population of over 320,000, Riverside serves as an economic powerhouse for the region, and this project highlights the growing demand for sustainable waste management solutions in urban centers. The transaction's financial closing remains subject to standard conditions, including the final execution of an amendment to the site lease and the acquisition of all necessary regulatory permits.
The sale of the Riverside project underscores a significant shift in Anaergia's business strategy towards a "capital-light" model. By transferring ownership to a third-party developer, the company reduces its financial exposure and project-related capital requirements, freeing up resources and accelerating the deployment of its renewable energy solutions. This approach enables Anaergia to partner with institutional investors and developers who can provide the necessary upfront capital, while Anaergia continues to generate revenue from its core competencies in technology, engineering, and services. The company's CEO, Assaf Onn, emphasized that this move aligns with Anaergia’s commitment to delivering impactful climate solutions while maintaining a more flexible and less capital-intensive structure.
