IFM Investors, which is owned by Australian super funds, has announced that the IFM Net Zero Infrastructure Fund (NZIF) has signed a definitive agreement to acquire a majority interest in GreenGas, a US-based renewable natural gas (RNG) developer, owner and operator.
NZIF is an open-ended fund, launched in 2022, seeking to accelerate the world’s transition to a net zero emissions economy by targeting essential infrastructure assets. GreenGas marks the fund’s first investment in the low-carbon fuels sector.
GreenGas captures, purifies and transports biogas from existing organic waste streams for its end use as pipeline quality RNG. It sells the RNG under long-term offtake contracts with investment-grade commercial and industrial customers, most notably being Mercedes-Benz, Berkshire Hathaway Energy, and Duke University.
Commenting on the acquisition, IFM Investors global head of infrastructure Kyle Mangini said: “We are excited to welcome GreenGas into the IFM NZIF portfolio and support its next phase of growth.”
“RNG projects operated by GreenGas can deliver significant emissions reductions, which is well aligned with IFM’s net zero commitments and our purpose to protect and grow the long-term retirement savings of working people,” Mr Mangini concluded.
Also commenting on the deal, GreenGas chief executive and founder Marc Fetten said: “Our new partner IFM will be investing in GreenGas as a platform to meet the growing demand for renewable energy solutions across the United States.
“Our projects not only reduce greenhouse gas emissions, but help RNG buyers decarbonise their energy-intensive operations. We look forward to working with IFM to grow the platform.”
Mid-2022, industry super fund-owned investment manager IFM Investors announced the launch of a new Climate Transition Fund for ASX-listed equities to help support the net zero ambitions of institutional investors.
At the time, the fund said it would provide investors with a low-risk strategy that benchmarks the ASX 300 with the aim to appeal to investors looking to decarbonise their Australian equities portfolios and reduce climate risk without taking on significant tracking error and fees.
