Xebec Adsorption Inc., - CEO, Kurt Sorschak
CEO, Kurt Sorschak
Source: OTC Markets Group
  • Renewable gas company, Xebec Adsorption (TSXV:XBC) has launched an investment fund, GNR Québec Capital LP, in partnership with Fonds de solidarité FTQ
  • The fund will aim to increase investments in Québec’s renewable natural gas sector
  • It will have an initial capitalisation of C$20 million, but could distribute up to $400 million to projects over the next decade
  • The fund is the first of its kind on Québec and will also offer expertise necessary to develop and operate renewable natural gas facilities
  • Xebec Adsorption (XBC) is currently up 3.5 per cent and is trading at $4.14 per share, with a market cap of $360.14 million

Xebec Adsorption (TSXV:XBC) has launched an investment fund, GNR Québec Capital LP, in partnership with Fonds de solidarité FTQ.

The fund will have an initial capitalisation of C$20 million, made up of a $10 million injection from both Xebec and Fonds de solidarité and will aim to increase investments within Québec’s renewable natural gas sector.

As a first for the province of Québec, partners in the fund will also have access to specific expertise necessary in developing and operating efficient organic waste treatment facilities.

President and CEO of Xebec Adsorption, Kurt Sorschak said the partnership is a great demonstration of how local players can collaborate to foster the development of the renewable natural gas sector.

“Quebec has become a leading renewable natural gas province in Canada and currently has several facilities in operation.

“Considering that new government regulations, such as the Clean Fuels Standard, will soon come into force and that the need for a higher renewable natural gas content will increase over the next few years…we are pleased to partner with the Fonds de solidarité FTQ to accelerate the deployment of renewable gas infrastructures,” he said.

Over time, GNR Québec Capital LP could receive up to $100 million in equity capital from Xebec, Fonds de solidarité and other investors. 

Based on a debt to equity ratio of 75 to 25, the fund may have the capacity to fund 12 to 15 renewable natural gas projects worth a total of $400 million over the next 10 years.

While the Canadian renewable natural gas industry is still in its infancy, the fund is seen as a crucial first step in accelerating the replacement of fossil fuels while supporting both sustainable and responsible investment in a waste-to-renewable gas economy.

Dany Pelletier, Vice President of Investments at Fonds de solidarité FTQ, said he is proud to be partnering with Xebec in the fight against climate change.

“Renewable natural gas can accelerate the decarbonisation of sectors such as transportation, home heating and industry, by supporting the circular economy through organic waste responsive management activities.

“This initiative also meets the Fonds’ objectives for a just energy transition by creating jobs and supporting local economies with additional revenue streams for farmers, municipalities, and industry,” he said.

Xebec Adsorption (XBC) is currently up 3.5 per cent and is trading at $4.14 per share at 12:27pm EDT.

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