GREEN IMPACT PARTNERS INC. ANNOUNCES THE CLOSE OF PROJECT LEVEL NON-RECOURSE DEBT FINANCING FOR THE GREENGAS COLORADO RNG PROJECT
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, BC, Jan. 4, 2022 /CNW/ – Green Impact Partners Inc. (“GIP” or the “Company“) is pleased to announce the closing of non-recourse project debt financing for its first renewable natural gas (“RNG“) facility, the GreenGas Colorado RNG Project (the “GreenGas Colorado RNG Project“) located in Weld County, Colorado. The non-recourse project debt financing is provided by a lender in the United States and includes both a construction and term loan facility of up to $48 million. The construction facility bears interest at prime + 2.75%. The term loan facility amortizes fully over six years and bears interest at prime + 1.00%. The construction and term loan facility include customary covenants, terms and conditions with no recourse to GIP.
Construction of the GreenGas Colorado RNG Project is progressing well and the project continues to be on time and on budget with gas production expected in early 2023. Ground works are nearly complete, with work now commencing on above ground structures. The GreenGas Colorado RNG Project has a fixed price EPC contract and is expected to cost approximately $90 million, including financing, debt service reserve and soft costs, with approximately $29 million invested to date. Once operating at full production, the GreenGas Colorado RNG Project is anticipated to generate approximately $20 million per annum in EBITDA based on an independent third party forecast and conservative RNG production numbers.
Jesse Douglas, CEO and Director, stated “closing this project debt financing is another significant milestone as we continue our build, own and operate strategy for bringing to market the cleanest energy in the world through our growing portfolio of RNG projects. With all material contracts executed and financing complete, we are accelerating construction activities to produce RNG as early as possible. This project is expected to generate 1,000 GJ per day of RNG, which is equivalent to fueling approximately 6 million cars per annum, on a net zero basis, providing a significant environmental impact.”
About Green Impact Partners
GIP is a publicly traded TSXV clean energy company. GIP is focused on leading the transition to a green and sustainable economy through an RNG focused strategy. GIP seeks to be impactful partners in a green, more sustainable future by optimizing late-stage technology to repurpose by-products into clean energy via RNG and other value-added substances.
This news release contains forward-looking statements and/or forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities laws. When used in this release, such words as “would”, “will”, “anticipates”, believes”, “explores” and similar expressions, as they relate to GIP, or its management, are intended to identify such forward-looking statements. Such forward-looking statements reflect the current views of GIP with respect to future events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause GIP’s actual results, performance or achievements to be materially different from any expected future results, performance or achievement that may be expressed or implied by such forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to: the impact of general economic conditions in Canada and the United States, including the ongoing COVID-19 pandemic; industry conditions including changes in laws and regulations and/or adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, in Canada and the United States; volatility of prices for energy commodities; change in demand for clean energy to be offered by GIP; competition; lack of availability of qualified personnel; obtaining required approvals of regulatory authorities, in Canada and the United States; ability to access sufficient capital from internal and external sources; many of which are beyond the control of GIP. Forward-looking statements included in this news release should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such forward-looking statements.
Readers are encouraged to review and carefully consider the risk factors pertaining to GIP described in the filing statement of GIP dated May 17, 2021, which is accessible on GIP’s SEDAR issuer profile at www.sedar.com. The forward-looking statements contained in this release are made as of the date of this release, and except as may be expressly be required by law, GIP disclaims any intent, obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Management of GIP has included the above summary of assumptions and risks related to forward-looking statements provided in this release in order to provide shareholders with a more complete perspective on GIP’s current and future operations and such information may not be appropriate for other purposes. GIP’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits GIP will derive therefrom.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.
SOURCE Green Impact Partners
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