Ameresco, HASI form Neogenyx Fuels to bolster advanced biofuels in America

American energy infrastructure conglomerate Ameresco and sustainability investor HA Sustainable Infrastructure Capital have agreed to spin off Ameresco biofuels business into a newly formed joint venture: Neogenyx Fuels.

Neogenyx Fuels will be owned 70% by Ameresco and 30% by HASI. As part of the transaction, Ameresco will contribute its biofuels business, comprising its scaled asset base and proven development and operating capabilities, into the joint venture, and HASI will commit to invest $400 million to support the growth of Neogenyx Fuels.

The transaction represents a strategic step to unlock the significant value embedded in Ameresco’s biofuels business, representing a $1.8 billion post-money enterprise value.

The joint venture is structured to drive long-term growth by pairing Ameresco’s deep technical expertise and proven execution capabilities with HASI’s scalable and flexible capital platform and extensive track record of structuring and executing investments in sustainable infrastructure assets.

George P. Sakellaris, CEO of Ameresco, said, “By enhancing the business through strategic focus and HASI’s expansive capital resources, Neogenyx Fuels will be positioned to scale faster and deliver a greater impact in this fast-growing market.”

Jeffrey A. Lipson, HASI President and CEO, stated, “As we expect continued growth in the RNG market, we are confident in deploying capital with a best-in-class operator, enabling us to create a valuable enterprise.”

After closing, Neogenyx Fuels will be one of the largest developers of biogas projects in the U.S., a product of Ameresco’s 25-year track record in greenfield development and long-term asset operation. With a tremendous development pipeline, we believe Neogenyx Fuels will be poised to support the buildout of scalable infrastructure that can drive job creation while reinforcing U.S. leadership in both the domestic use and global export of next-generation fuels.

“Neogenyx Fuels will represent a next-generation platform for advanced biofuels, delivering resilient energy supply today, while building the foundation for tomorrow’s drop in fuels, molecular products and chemicals, and other low carbon solutions,” said Michael T. Bakas, who will be Chief Executive Officer of Neogenyx Fuels.

Of the $400 million commitment from HASI, $300 million will be directly invested in Neogenyx Fuels to drive business growth, and $100 million will be direct compensation to Ameresco for the existing business, which will be used for strategic opportunities, working capital, and deleveraging throughout the year.