Florida-based renewables developer NextEra Energy has agreed to acquire assets worth US$1.1 billion for its renewable natural gas (RNG) division.

NextEra is buying the assets from owners of Energy Power Partners Fund I and North American Sustainable Energy Fund, both managed by Energy Power Partners, subject to closing adjustments, plus the assumption of approximately US$37 million of existing project finance debt.

The deal will enable NextEra to acquire a large portfolio of operating landfill gas-to-electricity facilities, thereby expanding not only its portfolio of RNG assets but also its in-house capabilities in a fast-growing market.

The company, listed on the New York Stock Exchange and headquartered in Juno Beach, Florida, owns Florida Power & Light Company. It also owns NextEra Energy Resources, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and the sun, and a world leader in battery storage.

Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin.

“This acquisition supports our renewable fuels strategy and our broader vision to lead the decarbonization of the US economy,” says NextEra Energy chief executive officer John Ketchum.

There have been a number of high-profile RNG deals this year. In October BP announced that it has agreed to acquire Archaea Energy, a leading RNG producer in the US. The proposed acquisition, which is subject to regulatory and shareholder approvals, involves US$3.3 billion in cash and the assumption of US$800 million of net debt.  

Acquiring Archaea Energy will expand BP’s presence in the US biogas industry. Archaea, based in Houston, Texas, is a leading RNG producer, operating 50 RNG and landfill gas-to-energy facilities across the US, producing around 6,000 barrels of oil equivalent a day (boe/d) of RNG. At closing, its production is expected to provide an immediate 50% increase to BP’s biogas supply volumes.

Archaea has a development pipeline of more than 80 projects that underpin the potential for a fivefold growth in RNG production by 2030.