Colorado company invests $100M in LFG-to-RNG startup

A Boulder, Colorado-based private equity firm has invested $100 million into a startup planning to gather methane emissions of landfills in two states and sell it as renewable natural gas (RNG), according to a report from the Denver Business Journal.

The startup, Pittsburg-based Vision RNG LLC, launched last week to develop landfill gas projects in Missouri and Virginia.

The $100 million funding is an initial investment from Vision Ridge Partners to begin scaling the business, and Vision RNG may eventually look beyond the projects in Missouri and Virginia to develop other landfill gas systems, the company said.

Vision RNG is one of the companies funded by investor Rueben Munger and Vision Ridge Partners. The company funded Vision RNG from the Sustainable Asset Fund II, where Munger is managing general partner, and one of three investment funds of Vision Ridge Partners that’s focused on real assets connected to environmental sustainability.

The startup is led by Bill Johnson, previously CEO of Pittsburgh-based ShalePro Energy Services, a company that designs and builds infrastructure for traditional natural gas producers. At Vision RNG, Johnson assembled a team with experience in landfill gas systems, natural gas compression and biogas operations.

“Landfill gas has long created challenges for landfill owners, the surrounding communities, and the greater environment,” said Johnson in a statement. Vision RNG “is determined to be part of the solution by developing projects that safely convert waste emissions into projects that are not only marketable, but also environmentally friendly.”

The startup’s focus is on projects from landfills not large enough to typically draw interest for building landfill gas capture systems, reports the Denver Business Journal.

According to Munger, the leadership team of Vision RNG is what drew the Vision Ridge Partners investment.

“Their deep energy infrastructure and operations experience uniquely positions them to identify LFG sites, address permitting and compliance needs, and develop on-site and off-site infrastructure to create renewable energy for society and value for our investors,” Munger said.

The Sustainable Asset Fund II, launched in 2018, raised more than $600 million to put into environmentally sustainable businesses, according to its U.S. Securities and Exchange Commission filings.

Munger started Sustainable Asset Fund III LP earlier this year with the intention to attract investment partners willing to collectively put in at about $1 billion. Vision Ridge Partners just closed the round after raising its maximum of $1.25 billion to invest, the company said.