Energy Investors Funds, a private equity fund manager that invests in the US energy and electric power sector, has agreed to acquire Landfill Energy Systems and certain of its affiliates t
Energy Investors Funds, a private equity fund manager that invests in the US energy and electric power sector, has agreed to acquire Landfill Energy Systems and certain of its affiliates through its United States Power Fund III, in partnership with Enpower, a California-based owner-operator of energy assets.
Privately-owned Landfill Energy Systems, which specialises in the development, construction and operation of renewable energy facilities at landfills, owns and operates a portfolio of 14 landfill gas-to-energy projects in seven US states. It has a total net installed capacity of 65.8 megawatts, 6.4MW under construction and more than 19MW in late-stage development.
The existing management will continue to run the company and will maintain a minority ownership interest. The transaction, whose terms have not been disclosed, is expected to close by the end of the year.
‘We are pleased that Energy Investors Funds, with its depth of industry experience, has entered into this transaction,’ says Landfill president Scott Salisbury. ‘We look forward to working with EIF and Enpower to grow LES and continue our leadership and commitment to the renewable energy sector through green-field development and acquisitions of landfill gas-to-energy projects.’
Energy Investors Funds was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry. Its investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior equity returns.
Energy Investors Funds seek to mitigate commodity risk in fuel and electricity by focusing on acquiring power assets with long-term off-take contracts. The firm has mobilised more than USD3.3bn in capital, and currently manages six private equity funds from its offices in Boston, New York, and San Francisco. The funds have made over 90 diversified investments with a combined underlying asset value of more than USD5bn.
Enpower owns, manages and operates electric power generating facilities, and currently owns through subsidiaries the general partner of Wadham Energy, a 26MW biomass facility in Williams, California, and Oildale Energy, a 40MW gas turbine cogeneration facility in Bakersfield, California.
Enpower’s subsidiary, Enpower Operations, operates and manages a 15MW equivalent landfill gas recovery facility for the Delaware Solid Waste Authority in Wilmington. It is active in landfill gas-to-energy acquisitions and in the development of landfill gas-to-high Btu gas facilities.
Jerrold Jung and Scott Salisbury founded what is now Landfill Energy Systems in 1986 as a subsidiary of the Michigan Caterpillar dealership. The company, which became an independent entity in 1988, initially focused on developing natural gas-fired cogeneration plants for third parties such as hospitals and universities.
The company built 16 cogeneration facilities totalling 30MW before changing its focus to develop landfill gas-to-energy projects and changing its name to Landfill Energy Systems in 1993. It has constructed a total of 27 landfill gas-to-energy facilities to date on its own account, in partnership with others and for third parties.
