EverGen Infrastructure: Expanding RNG Capacity and Exploring Strategic Transactions

EverGen Infrastructure Corp. (TSXV: EVGN) (OTCQX: EVGIF) has provided operational updates for its facilities and announced the formation of a Special Committee to evaluate potential strategic transactions. These updates highlight the company's commitment to growth and expansion in the renewable natural gas (RNG) sector.

Pacific Coast Renewables (PCR) Expansion Project

EverGen has secured increased tipping fees for the PCR facility, which will help offset higher operating costs driven by enhanced regulatory standards and a December 2024 fire. The increased revenue is expected to support operational adjustments necessary due to record rainfall in Greater Vancouver, which limited the facility's ability to process materials during high-rainfall months.

Additionally, the City of Abbotsford's Agricultural Advisory Committee (AAC) has endorsed the PCR RNG expansion project, recommending it for approval. Upon receiving City Council approval, the final regulatory step is securing authorization from the Agricultural Land Commission, expected to be reviewed in the second half of 2025. This endorsement is a critical milestone in the permitting process, bringing the project closer to completion.



Prairie Sky Organics (PSO) Update

EverGen and the City of Regina have mutually agreed to terminate their organic waste processing service agreement, effective January 31, 2025. This termination allows EverGen to allocate resources more effectively, focusing on key projects that maximize its impact and expansion objectives.

In response to the termination, EverGen has formed an independent Special Committee to evaluate multiple inbound interests regarding potential strategic transactions. The Special Committee will review these opportunities with the goal of maximizing value for EverGen shareholders and other stakeholders. No decisions relating to any specific Potential Strategic Transaction have been made, and there are no assurances that any Potential Strategic Transaction, or transactions, will result from the formation of the Special Committee and the strategic review process.

EverGen's Growth Trajectory

EverGen's operational updates and the formation of the Special Committee signal the company's commitment to exploring growth opportunities and maximizing shareholder value. The increased tipping fees and permitting milestones at PCR, along with the exploration of strategic transactions, are expected to contribute to EverGen's long-term growth. The termination of the PSO agreement may result in a short-term loss of revenue but allows EverGen to focus resources on more impactful projects.

In conclusion, EverGen Infrastructure's operational updates and strategic initiatives demonstrate the company's commitment to growth and expansion in the RNG sector. The permitting milestones and endorsements for the PCR RNG expansion project, along with the exploration of potential strategic transactions, position EverGen for continued success in the renewable energy landscape.