Nexus PMG raises $50M to target waste diversion

Dallas-based Nexus PMG has received a $50 million equity round it says will be invested to accelerate in-house development platforms focused on renewable natural gas and sustainable aviation fuel production.

The funding round was led by an affiliate of New York-based Greenbacker Capital Management LLC, with participation from the Ontario Power Generation (OPG) Pension Fund and Liberty Mutual Insurance.

“The close of this investment represents a significant milestone as the firm builds upon a decade of experience in the low-carbon waste-to-value sector and will enable Nexus PMG to rapidly expand its services business and project development business lines in North America," Nexus PMG says.

“Nexus PMG’s strategy of consulting for, and directly developing in, the waste-to-value space is an attractive, high-growth proposition,” says Quinn Pasloske, principal at Greenbacker.

“The transformation of our waste infrastructure and the production of low-carbon fuels is a critical component of the global energy transition, but the assets are challenging. Nexus PMG is well equipped to assist clients in navigating those complexities while advancing its independent platforms and assets.”

Nexus PMG lists several projects it has been involved in, including several using anaerobic digestion (AD) technology to convert agricultural byproducts and food scraps into renewable natural gas (RNG) and other forms of energy.

“Today, as corporations and investors strive to meet near- and long-term sustainability goals, we find that most have existing portfolio assets with a waste component that can be valorized,” says Ben Hubbard, CEO of Nexus PMG. “Helping corporates in those waste-to-value asset classes is essential to achieve our larger energy transition goals and now, as an institutionally backed firm, we’re looking forward to expanding our team to meet a growing demand for low-carbon infrastructure subject matter expertise.”

The company says its services business has supported more than 80 investors and has advised on more than 500 different infrastructure assets.

“With the new round of capital, Nexus PMG intends to expand its existing core service offerings including front-end engineering and design, development-as-a-service and operational turnaround,” the firm says.

Nexus PMG calls the sustainable fuels, biomass and waste-to-value asset sector “highly complex,” but says as an early mover in the low-carbon infrastructure sector, it can "leverage its deep knowledge in the space to develop greenfield and brownfield assets across North America," creating low-carbon (or even carbon-negative) products to reduce the emissions of tough-to-abate sectors like chemicals production and aviation.

“Green molecule infrastructure is rapidly advancing and is a critical component of the energy transition,” says Ryan Bisch, board member at Nexus. “Nexus is at the forefront of building and optimizing this type of infrastructure. The company can develop new assets and revitalize existing ones to produce cost-competitive molecules that can reduce or even eliminate harmful greenhouse gasses.”

Nexus PMG subsidiaries involved in the sector are Nexus W2V, which focuses on converting organic waste streams into renewable natural gas, compost products and biochar; and Pathway Energy, which focuses on the production of ultra-low-carbon intensity sustainable aviation fuel tied to carbon sequestration. Nexus PMG says both subsidiaries are developing greenfield infrastructure assets and expect to commercialize those assets in the next several years.