Ontario Teachers’ Pension Plan Takes a Gamble on Sevana Bioenergy
Posted on 03/30/2023
Boise, Idaho-based Sevana Bioenergy LLC develops, designs, owns, and operates large-scale anaerobic digestion projects which produce renewable natural gas and organic based soil amendments. Ontario Teachers’ Pension Plan Board acquired a majority stake in Sevana Bioenergy and will make a capital commitment of US$ 250 million to develop renewable natural gas (RNG) projects across North America. Sevana has executed dairy and organics projects which include more than 20 state-of-the-art digester tanks across agricultural regions such as Oregon, Idaho, and South Dakota since its founding by CEO John McKinney in 2017. McKinney was the President of Columbia Biogas. In 2015, Columbia Biogas abandoned its proposed US$ 55 million anaerobic food waste digester in Portland, Oregon
Sevana is the latest investment by Ontario Teachers’ Pension Plan in the Sustainability and Energy Transition sector and will serve to advance the organization’s commitment to achieve net-zero greenhouse gas emissions by 2050.
Kirkland & Ellis LLP served as legal counsel to Ontario Teachers’ on the transaction. Fredrickson and Byron served as legal counsel to Sevana.
In July 2020, Meridiam entered into an agreement to develop a biodigester project, located in the State of Idaho near Twin Falls, together with Sevana Bioenergy, as development partner, service provider and longterm co-investor. The project consists of the acquisition of an existing biogas facility which has been in operation since 2011. The 2010 project represented an investment of approximately US$ 35 million for Meridiam.
Keywords: Ontario Teachers Pension Plan.