Evensol LLC, project partners close on investment tax credit transfer deal for 2 North Carolina LFG-to-RNG projects

Evensol LLC, a renewable energy project developer based in Sisters, Oregon, says it closed an investment tax credit (ITC) transfer deal earlier this fall on its two North Carolina renewable natural gas (RNG) projects, totaling a combined $34.5 million. Atlanta-headquartered Monarch Private Capital facilitated the transaction, which closed in collaboration with project partners that included Energyneering Solutions (ESI), also based in Sisters, and Pacolet Milliken of Greenville, South Carolina.

Evensol says the projects, The Foothills Renewables Project in Caldwell County and the Upper Piedmont Renewables Project in Person County, were able to qualify for and include in the transaction the 10 percent ITC adder for domestic content available under IRS Section 48 for renewable energy projects.

Commissioned in 2023, the two North Carolina RNG facilities convert landfill gas from two Republic Services landfills into RNG, providing a beneficial use for large volumes of landfill gas while creating a valuable renewable energy source for the residents of North Carolina. The RNG from each facility provides transportation fuel to commercial fleet vehicles. Each project is designed to produce up to 500,000 dekatherms (Dth) of RNG per year, Evensol says, with current injections approaching 1,000 Dth per day. At full production, the combined 1 million dekatherms are equivalent to the annual natural gas use of nearly 17,000 residential customers in North Carolina.

Evensol was established in 2013 to create value for its partners, investors and project counterparties through the selective acquisition and development of renewable fuels-based energy assets, with a particular focus on the biomass, biogas and biofuels sectors throughout the U.S. and abroad. The company says it pursues the development and acquisition of renewable energy assets requiring special attention to technical detail, flexibility in commercial and financial contract structure, process challenges, environmental limitations and other factors that could constrain other investors or developers.

“Evensol is proud to be among the first renewable natural gas project developers to close an ITC transfer deal,” says David Wentworth, president and CEO. “The inclusion of the 10-percent domestic content adder provided significant additional value to our investors and the ITC buyer. We are also delighted to be one of the industry pioneers in proving out our commitment to supporting and sourcing products made in the USA.”

“We’re excited to have participated in the financing of Evensol’s unique renewable energy projects,” says Bryan Didier, partner at Monarch Private Capital. “It is a great example of pursuing an ‘all of the above’ energy strategy via the upcycling of otherwise nonproductive waste to clean fuel.”

Lance Jordan, chief information officer of Power & Infrastructure at Pacolet Milliken, says, “This transaction was highly beneficial for all parties involved. It marked several important milestones at the intersection of the RNG sector and the U.S. Inflation Reduction Act.”

Evensol, its investor partners and lenders invested a combined $110 million in the development, design, permitting and construction of the RNG facilities. As the engineering, procurement and construction provider for the projects, ESI played a critical role in qualifying for the ITC and the corresponding domestic content adder, Evensol says.

“ESI showed tremendous patience and perseverance in working with major equipment providers, which proved to be the difference-maker in closing prior to tax filing deadlines,” Wentworth says. “We’re incredibly grateful to ESI and appreciate the collective efforts of all of our investors and stakeholders in completing this innovative ITC financing transaction.”