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Xebec and Fonds de solidarité FTQ launch an investment fund to increase renewable natural gas production in Québec
Xebec and Fonds de solidarité FTQ launch an investment fund to increase renewable natural gas production in Québec.
About this update from Xebec Adsorption Inc.
[{"type":"text","content":"\n MONTREAL, June 01, 2020 (GLOBE NEWSWIRE) -- Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions, and Fonds de solidarité FTQ (the “Fonds”) are proud to announce the creation of the GNR Québec Capital L.P. investment fund. With an initial capitalization of $20 million, this new investment vehicle aims to increase renewable natural gas (RNG) production in Québec. Partners, particularly from the agricultural and municipal sectors, will have access to the capital and expertise needed to develop and operate efficient facilities to treat organic waste. The creation of a fund of this type for renewable natural gas projects is a first in Québec. Xebec and the Fonds will each initially invest $10 million into the partnership. Over time, Xebec and the Fonds expect that the partnership could receive an aggregate $100 million in equity capital from Xebec, the Fonds and other investors. Xebec and the Fonds’ initiative could, with a 75:25 debt to equity ratio, fund 12 to 15 renewable natural gas projects in Québec with an aggregate investment of $400 million over the next decade. The general partner, GNR Québec Capital Management Inc., overseen by a Board of Directors nominated by Xebec and the Fonds will be managing the partnership. “We’re proud to once again partner with Xebec to increase the Fonds de solidarité FTQ’s impact in the fight against climate change. Renewable natural gas can accelerate the decarbonization of sectors such as transportation, home heating and industry, by supporting the circular economy through organic waste responsive management activities. This initiative also meets the Fonds’ objectives for a just energy transition by creating jobs and supporting local economies with additional revenue streams for farmers, municipalities, and industry. Xebec is a worldwide leader in renewable gases, and we are excited to have them as a partner in this project for the large-scale rollout of renewable natural gas facilities in Québec,” says Dany Pelletier, Vice President for Investments - Structuring Capital, Energy and Environment, Fonds de solidarité FTQ. \"Our partnership with the Fonds de solidarité FTQ is a great demonstration of how local players can work together to foster the...