The Fremont transaction furthers Generate’s thesis in turning around existing anaerobic digesters. In this instance, we have acquired an idled project in Fremont, MI from receivership, which will have the capacity to process 165,000 tons of organic and agricultural waste per year and a capacity of 2.85 MW following necessary upgrades. The original 20-year PPA has 16 years remaining, the revenue from which is sufficient to cover Generate’s capital contribution over 15 years. Upside comes from restoring relationships with feedstock providers in order to secure long-term contracts for tipping fees. Part of this process entails proper effluent management, which is central to Generate’s turnaround strategy.
- $9M total investment
- 21% levered pre-tax IRR
- 5-year payback
