Ameresco and HASI form $1.8 billion biofuels joint venture

Ameresco Inc. (NYSE: AMRC) and HA Sustainable Infrastructure Capital Inc. (NYSE: HASI) announced the formation of Neogenyx Fuels, a joint venture combining Ameresco's biofuels business with HASI's investment platform.

Under the agreement, Neogenyx Fuels will be owned 70% by Ameresco and 30% by HASI. The transaction represents a $1.8 billion enterprise value for the newly formed joint venture. HASI will invest $400 million to support growth, with $300 million going directly to Neogenyx Fuels and $100 million as compensation to Ameresco for the existing business.

Ameresco will contribute its biofuels business, including its asset base and development capabilities, to the joint venture. The companies have signed the agreement and expect closing within the quarter.

"Ameresco has been a leader in the biofuels industry for the last twenty-five years, turning the beneficial use of biogas into a reliable low-carbon fuel source," said George P. Sakellaris, Chief Executive Officer of Ameresco.

Jeffrey A. Lipson, HASI President and Chief Executive Officer, noted that HASI has been a partner with Ameresco across more than 60 joint transactions since 2001.

Michael T. Bakas will serve as Chief Executive Officer of Neogenyx Fuels. According to the companies, the joint venture will be one of the largest developers of biogas projects in the United States following the transaction's completion.

Ameresco will consolidate Neogenyx Fuels, with 30% of net income attributable to HASI as non-controlling interest. The transaction information is based on the companies' press release statement.

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