- Tidewater (LCFS) has entered into a 20-year offtake agreement with FortisBC Energy
- The company’s subsidiary, Rimrock Renewables, will supply FortisBC with up to 525,000 gigajoules (GJ) of renewable natural gas (RNG) annually from a new facility in Alberta
- Deliveries are expected to begin in the first half of 2024, subject to regulatory approval
- Tidewater Renewables produces low-carbon fuels to facilitate the sustainable energy transition
- Tidewater (LCFS) is up by 4.44 per cent, trading at $9.89 per share
Tidewater (LCFS) has entered into a 20-year offtake agreement with FortisBC Energy.
The company’s subsidiary, Rimrock Renewables, will supply FortisBC with up to 525,000 GJ of RNG annually from a new facility located in Foothills County near High River, Alberta.
The agreement will underpin 100 per cent of the project’s revenue generation.
The facility will convert feedlot manure to pipeline-quality RNG with negative carbon intensity scores through an anaerobic digestion and gasification process. Tidewater expects to secure 100 per cent of the project’s feedstock through an existing partnership with Rimrock RNG and Rimrock Cattle Company.
Upon completion, the facility will convert organic waste into enough energy to supply 5,800 residential homes in B.C., while generating $10 million in run rate EBITDA (on a 100 per cent basis).
The companies expect the British Columbia Utilities Commission to decide on project approval by Q1 2023, with Tidewater expecting to supply FortisBC with RNG by the first half of 2024.
“The 20-year offtake agreement marks a significant milestone for the RNG facility and enhances the economic certainty of the project,” said Joel MacLeod, Tidewater’s Executive Chairman and CEO.
“One of the many ways we’re working to reduce greenhouse gas emissions is by increasing the amount of renewable and low-carbon gases, like RNG, in our system,” added David Bennett, Director of Renewable Gas and Low-Carbon Fuels at FortisBC. “And it is with agreements like these that we can make commitments to reducing greenhouse gas emissions in our system and for our customers.”
Tidewater Renewables produces low-carbon fuels, including renewable diesel, sustainable aviation fuel, renewable hydrogen and renewable natural gas, as well as carbon capture through future initiatives.
Tidewater (LCFS) is up by 4.44 per cent, trading at $9.89 per share as of 9:46 am EST.
