Enbridge purchases 7 RNG facilities from Morrow Renewables

Enbridge Inc., a multinational pipeline and energy company headquartered in Alberta, has purchased seven operating U.S. landfill gas-to-renewable natural gas (RNG) facilities from RNG developer Morrow Renewables.

The $1.2 billion portfolio establishes Enbridge’s RNG business as a North American midstream leader by volume. These assets complement recent Enbridge moves to grow North America’s volumes of RNG made from food waste and farm waste, according to the company.

“This transaction represents a uniquely de-risked portfolio of operating and scalable RNG assets,” Enbridge President and CEO Greg Ebel says. “The landfill gas-to-RNG facilities … will accelerate progress toward our energy transition goals. I am pleased to welcome the Morrow Renewables team members to the Enbridge family.”

Enbridge currently employs about 86 full-time employees in plant and field operations.

The Morrow facilities deliver RNG from municipal landfills in six Texas locations—Edinburg, Hinton, Tyler, Melissa, Longview and Alvarado—in addition to Fort Smith, Arkansas. Enbridge says these regions have growing demographics, ongoing landfill growth and strong partnerships with local municipalities.

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Landfill RNG facilities collect gas produced by waste decomposition in landfills and treat and compress the gas to pipeline specifications.

After it’s upgraded into pipeline-grade methane, RNG is blended into existing natural gas distribution and transmission networks, where it can be used to fuel transit fleets, power industry facilities and heat homes and businesses.

These seven facilities currently produce, in aggregate, about 5 billion cubic feet of RNG per year.

All seven are in operation, with a commercial structure underpinned by long-term contracts with municipalities and offtake agreements with customers, such that the portfolio will contribute to EBITDA in 2024.

“These assets were developed by a reputable management team that’s been in the business for more than 20 years; we look forward to working with that team towards a smooth transition,” says Caitlin Tessin, vice president of strategy and market innovation at Enbridge.