EVENSOL LLC, a renewable energy project developer focusing on biogas and methane mitigation, has closed an investment tax credit (ITC) transfer deal on its two North Carolina renewable natural gas (RNG) projects, totaling a combined $34.5 million.
The transaction was facilitated by Monarch Private Capital and closed in collaboration with project partners including Energyneering Solutions (ESI) and Pacolet Milliken.
Notably, the projects were able to qualify for and include in the transaction the 10-percent ITC adder for domestic content available under IRS Section 48 for qualifying renewable energy projects.
“EVENSOL is proud to be among the first renewable natural gas project developers to close an ITC transfer deal,” said David Wentworth, president and CEO of EVENSOL.
“The inclusion of the 10-percent domestic content adder provided significant additional value to our investors, and the ITC buyer. We are also delighted to be one of the industry pioneers in proving-out our commitment to supporting and sourcing products made in the USA.”
Commissioned in 2023, the two North Carolina RNG facilities convert waste into renewable fuel, providing a beneficial use for large volumes of landfill gas, while creating a valuable renewable energy source for the residents of North Carolina.
“We’re excited to have participated in the financing of EVENSOL’s unique renewable energy projects,” said Bryan Didier, partner at Monarch Private Capital. “It is a great example of pursuing an ‘all of the above’ energy strategy via the upcycling of otherwise nonproductive waste to clean fuel.”
The RNG from each facility provides clean transportation fuel to commercial fleet vehicles.
Each project is designed to produce up to 500,000 dekatherms (Dth) of RNG per year, with current injections approaching 1,000 Dth per day.
At full production, the combined 1 million dekatherms is equivalent to the annual natural gas use of nearly 17,000 residential customers in North Carolina.
Oregon-based EVENSOL, its investor partners and lenders invested a combined $110 million in the development, design, permitting and construction of the state-of-the-art RNG facilities.
As the engineering, procurement and construction (EPC) provider for the projects, ESI played a critical role in qualifying for the ITC and the corresponding domestic content adder.
“ESI showed tremendous patience and perseverance in working with major equipment providers, which proved to be the difference-maker in closing prior to tax filing deadlines,” added Wentworth. “We’re incredibly grateful to ESI and appreciate the collective efforts of all of our investors and stakeholders in completing this innovative ITC financing transaction.”
EVENSOL closes $34.5m deal on North Carolina RNG projects
