by Adriano Marches
Green Impact Partners Inc said Thursday it expects lower earnings in the short term as it prioritizes development of its renewable natural gas projects over the next two years.
The Canadian Clean Technology and Transition Energy Company said it has signed a binding agreement for project construction and funding the Colorado RNG project.
It said the project is currently under construction and the completion date remains on target for December 2022.
The facility is expected to cost approximately 90 million Canadian dollars, equivalent to US$71 million, and generate approximately C$20 million annual income before interest, taxes, depreciation and amortization.
Additionally, Green Impact said it has secured a new agro-based renewable natural gas project in the province of Alberta, which upon completion is expected to produce 2 million British thermal units of RNG a year.
It said a final investment decision for the facility is expected in 2022.
As the company focuses on its growth activities, Green Impact said it expects short-term Ebitda to decrease for the remainder of 2021 and 2022.
Currently in its third quarter, the company said revenue at current operations increased from C$11.7 million to C$35.4 million while adjusted Ebitda fell approximately C$0.2 million to C$0.6 million.
“Revenue growth is driven primarily by improved industry activity, which has enabled us to achieve higher throughput from our recent facility upgrades,” the company said.
Write to Adriano Marchese at [email protected]