Record production of renewable natural gas (RNG) pushed EverGen Infrastructure Corp.’s (EVGN-X) revenue in Q2 to $4.2 million, higher than Q1 and nearly double the same period last year, with its net loss shrinking as well.

The Vancouver-based company says it reached record RNG production from completing and commissioning its Fraser Valley Biogas (FVB) project in December 2023, and starting RNG production at its Grow the Circle Energy Ltd. subsidiary in Q2 2023. As a result, revenue jumped up 31 per cent from Q1 ($3.2 million) and 96 per cent from Q2 2023 ($2.16 million).

It generated over 42,000 gigajoules of RNG and 911 megawatt-hours of electricity in Q2. Compared to Q1, it represents a 19 per cent increase in gigajoules of RNG and a seven per cent increase in megawatt-hours of electricity. The company saw a 555 per cent rise in gigajoules of RNG and a one per cent decrease in megawatt-hours of electricity from Q2 2023.

Net loss fell by two per cent from the same quarter a year earlier to $875,000, and decreased by 34 per cent from $1.3 million in Q1. The loss was “consistent” with Q2 2023, despite including the additional carrying costs of engineering overhead related to the completion of FVB, EverGen explained in a release.

“The second quarter demonstrated continued revenue growth across the EverGen platform,” EverGen CEO Mischa Zajtmann said in the announcement. “With the FVB facility proven in operation approaching full capacity and major strides in our development pipeline, we are well positioned for significant, sustained growth as we continue to scale our operations and lead in the renewable energy space.”

Zajtmann said in an investor call Thursday afternoon the Q2 results are “really showing what the platform looks like as we bring our projects online and then ramp them up.” A key focus in Q2 was de-risking FVB and executing on a 20-year offtake agreement with FortisBC, he added.

EverGen’s EBITDA, cash situation

In earnings before interest, taxes, depreciation and amortization, its Q2 results showed $966,000, compared to $217,000 in Q1 and a loss of $387,000 in Q2 2023. The company attributed the rise to increasing revenues that were partially offset by escalating operating costs tied to RNG production, and recurring general and administrative expenses.

Cash and cash equivalents fell: EverGen reported $402,000 in Q2, compared to $717,000 in Q1 and $9.5 million in Q2 2023.

Sean Hennessy, EverGen's CFO, said in the investor call the company's revenue growth was achieved despite FVB still ramping up to its nameplate capacity of 160,000 gigajoules per year, and being unsuccessful in monetizing carbon credits generated from as early as Q4 2023.

EverGen’s progress on projects

The company also updated the status of its projects across Canada that cover RNG production.

EverGen takes organic waste from sources such as food or agriculture and processes it into RNG or other products such as fertilizer.

It holds two RNG-producing facilities with offtake agreements and three organic processing facilities in Canada. EverGen has up to 480,000 gigajoules of RNG contracted with utilities FortisBC and Irving, setting an annual revenue base of $12 million, according to a corporate presentation which was given in May.

The de-risking of FVB establishes a model for its other projects, particularly reaching a final investment decision (FID) for Pacific Coast Renewables (PCR), Phase 2 of GrowTEC and Project Radius, Zajtmann said.

The FID for PCR is targeted for the end of Q3, and the project is considered fully funded

Phase 2 of GrowTEC awaits approval of a grant to underwrite capacity expansion to double throughput capacity at its upgrader. FID is anticipated by the end of Q3. 

Project Radius is in the final stage of FID, which is anticipated to close by mid-Q4.

“As September is just around the corner, and with several significant milestones and our core projects ahead, we expect it to be a big couple of months and an eventful end to the year with lots of news flow.”

Sustainable Biz Canada has updated this story with comments from EverGen following an investor call.