VAUGHAN, ON, Dec. 14, 2021 /CNW/ - GFL Environmental Inc.
(NYSE: GFL) and (TSX: GFL) ("GFL" or the "Company") announced
today that its wholly owned subsidiary, GFL Renewables LLC ("GFL
Renewables") has entered into a joint venture with affiliates of
OPAL Fuels LLC ("OPAL Fuels") for the development, construction and
operation of renewable natural gas ("RNG") facilities at 2 GFL
municipal solid waste ("MSW") landfills; the Arbor Hills Landfill
in Michigan and the Sampson County
Landfill in North Carolina. GFL Renewables and OPAL Fuels
will be 50/50 participants in the joint venture created for these
projects. OPAL Fuels will oversee construction and develop and
operate the facilities for the joint venture.
Both projects will convert methane gas from collection systems
at the MSW landfills into commercial- grade, pipeline-quality RNG
that can be used in commercial and industrial direct-use
applications including as fuel for natural gas-powered
vehicles.
The Arbor Hills Landfill RNG project is expected to produce
approximately 2 million MMBtu of pipeline- quality RNG each year.
Construction of the facility is expected to commence in the first
quarter of 2022 and commencement of operations is currently
projected for the end of the first quarter of 2023.
The Sampson County Landfill RNG project is expected to produce
approximately 1 million MMBtu of pipeline-quality RNG each year.
Construction of the facility is expected to commence by the second
quarter of 2022 and commencement of operations is currently
projected for the end of the second quarter of
2023.
GFL's capital investment in the joint ventures with OPAL Fuels
will total approximately US$70
million (CAD$90 million) over
the next 18 months and generate over 3 million MMBtu per year of
RNG. While current market rates for RNG range from mid to high
US$30 per MMBtu, in its base case,
which assumes rates at mid US$20s per MMBtu, GFL expects to realize
annual free cash flow from these projects of US$40-45 million (CAD$51-58 million).
Patrick Dovigi, Founder and CEO
of GFL said: "We are continuing to work on arrangements with
leading developers and distributors at other GFL landfills and in
the coming weeks, expect to announce arrangements for RNG
facilities at 4 additional GFL landfill sites that are expected to
generate approximately 2 million MMBtu of pipeline-quality RNG.
The 6 projects in our base case are expected to generate over
US$65 million (CAD$83 million) in incremental annual free cash
flow and put us well on our way to realizing the previously stated
opportunities within our GFL Renewables initiatives."
Mr. Dovigi continued: "These facilities will also significantly
advance our own sustainability goals and those of our customers, by
reducing greenhouse gas emissions through the beneficial reuse of
RNG to replace virgin fuel applications. These collaborations with
industry leaders like OPAL Fuels are central to achieving GFL's
ambitions for a low carbon future."
About GFL
GFL, headquartered in Vaughan,
Ontario, is the fourth largest diversified environmental
services company in North America,
providing a comprehensive line of non-hazardous solid waste
management, infrastructure & soil remediation and liquid waste
management services through its platform of facilities throughout
Canada and in more than half of
the states in the United States.
Across its organization, GFL has a workforce of more than 17,000
employees.
Forward Looking Statements
This release includes certain "forward-looking statements",
including statements relating to the joint venture arrangements
described herein, the prospects for RNG and the anticipated timing
and benefits of the RNG projects to GFL's business and operating
performance. In some cases, but not necessarily in all cases,
forward-looking statements can be identified by the use of forward
looking terminology such as "plans", "targets", "expects" or "does
not expect", "is expected", "an opportunity exists", "is
positioned", "estimates", "intends", "assumes", "anticipates" or
"does not anticipate" or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might", "will" or "will be taken",
"occur" or "be achieved". In addition, any statements that refer to
expectations, projections or other characterizations of future
events or circumstances contain forward-looking statements.
Forward-looking statements are not historical facts, nor guarantees
or assurances of future performance but instead represent
management's current beliefs, expectations, estimates and
projections regarding future events and operating performance.
Forward-looking statements are necessarily based on a number of
opinions, assumptions and estimates that, while considered
reasonable by GFL as of the date of this release, are subject to
inherent uncertainties, risks and changes in circumstances that may
differ materially from those contemplated by the forward-looking
statements. Important factors that could cause actual results to
differ, possibly materially, from those indicated by the
forward-looking statements include, but are not limited to, changes
in the supply of and demand for RNG, the timing, cost, and success
of the joint venture projects described herein, commodity prices,
particularly the prices for Renewable Identification Numbers under
the U.S. Environmental Protection Agency's Renewable Fuel Standard
Program, counterparty financial risk, the timing and success of
business development efforts and the other risks and uncertainties
described in the "Risk Factors" section of GFL's annual report for
the 2020 fiscal year filed on Form 20-F and GFL's other periodic
filings with the U.S. Securities and Exchange Commission and the
securities commissions or similar regulatory authorities in
Canada. These factors are not
intended to represent a complete list of the factors that could
affect GFL. However, such risk factors should be considered
carefully. There can be no assurance that such estimates and
assumptions will prove to be correct. You should not place undue
reliance on forward-looking statements, which speak only as of the
date of this release. GFL undertakes no obligation to publicly
update any forward-looking statement, except as required by
applicable securities laws.
For more information:
Patrick Dovigi
+1 905-326-0101
pdovigi@gflenv.com
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SOURCE GFL Environmental Inc.