Pipeline operator Kinder Morgan would buy renewable natural gas developer Kinetrex Energy from an affiliate of Parallel49 Equity for $310 million, to expand into green energy.
Kinder Morgan in March formed an Energy Transition Ventures group to focus on low-carbon energy initiatives.
Kinetrex, which supplies liquefied natural gas in the U.S. Midwest, has 50 percent interest in the largest renewable natural gas (RNG) facility in Indiana as well as commercial agreements to begin construction on three additional landfill-based RNG facilities, Kinder Morgan said on Friday.
The total annual RNG production from the four sites is estimated to be over 4 billion cubic feet in 2022, once the facilities are operational.