Ontario Teachers’ buys biogas projects developer Sevana Bioenergy

• Sevana was founded by CEO John McKinney in 2017
• It is a pioneer in the RNG industry, developing and upgrading large-scale biogas projects to increase the production and use of RNG through the reduction of organic waste
• Sevana is Ontario Teachers’ latest investment in the sustainability and energy transition sector

Ontario Teachers’ Pension Plan has acquired a majority stake in Sevana Bioenergy, a Boise, Idaho-based developer and upgrader of large-scale biogas projects.

As part of the deal, Ontario Teachers’ will invest C$250 million to develop renewable natural gas projects across North America.

Sevana was founded by CEO John McKinney in 2017. The company is a pioneer in the RNG industry, developing and upgrading large-scale biogas projects to increase the production and use of RNG through the reduction of organic waste. Sevana has successfully executed dairy and organics projects which include more than 20 state-of-the-art digester tanks across agricultural regions such as Oregon, Idaho and South Dakota.

“We are pleased to partner with John and the Sevana team to help accelerate their efforts to develop advanced digester facilities that produce RNG and electricity for transportation fuel, EV charging and other forms of energy,” said Zvi Orvitz, senior managing director, sustainability and energy transition, private capital at Ontario Teachers’ Pension Plan, in a statement. “Sevana has a demonstrated track record of success in the implementation of cutting edge RNG facilities, and we are excited by the opportunity to further scale the company as it enters its next chapter of growth.”

Ontario Teachers’, one of Canada’s largest pension systems, had net assets of C$247.2 billion as at December 31, 2022. Sevana is its latest investment in the sustainability and energy transition sector.

Kirkland & Ellis served as legal counsel to Ontario Teachers’ on the transaction while Fredrickson and Byron served as legal counsel to Sevana.