Houlihan Lokey Advises INGENCO

Houlihan Lokey is pleased to announce that Riverview Investment Holdings LLC (Riverview) has sold 100% of its equity interest in NextGen Power Holdings LLC (INGENCO) to Archaea Energy Inc. (Archaea) for $215 million. The transaction closed on July 15, 2022.

INGENCO is a landfill gas-to-energy (LFGTE) platform headquartered in Richmond, Virginia, comprising 14 power-generation assets (the facilities) located across the mid-Atlantic region of the United States. INGENCO provides highly valuable baseload renewable power by collecting and utilizing the LFG that would otherwise be flared, making the assets an attractive alternative to traditional wind or solar investments. Prior to the process, the company began pursuing a near-term conversion of its largest LFGTE assets to renewable natural gas (RNG) facilities. The conversion was a key driver of value for the company, supported by long-term LFG supply agreements and significant gas flows as well as advanced RNG conversion discussions with landfill owners.

Archaea (NYSE:LFG) is one of the largest RNG producers in the United States, with an industry-leading platform and expertise in developing, constructing, and operating facilities to capture waste emissions and convert them into low-carbon fuel and electricity. The INGENCO acquisition represents a significant addition to Archaea’s backlog of attractive RNG development opportunities. In addition to RNG development, Archaea plans to explore opportunities to optimize the existing electricity generation infrastructure.

Riverview is an affiliate of Castleton Commodities International (CCI), a leading global energy commodities trader and infrastructure asset investor with a focus on capturing emerging opportunities across the energy commodity value chain.

Houlihan Lokey served as the exclusive financial advisor to INGENCO in marketing, structuring, and negotiating the transaction on its behalf. This deal highlights Houlihan Lokey’s continued success advising the largest market participants in the energy infrastructure industry and establishes a benchmark transaction in the growing RNG space.