The surge will be driven by rising interest in RNG assets, which is expected to witness a ~100% y/y growth in deal activity in 2023 driven by improved business economics of RNG, due to the recently unveiled federal and state incentives. The activity will be led by PE firms and PE-backed companies, who seek to cash-in on the premiums in valuation of RNG assets. Additionally, O&G majors will continue to accelerate investments in clean fuels due to synergies with existing operations.
Meanwhile, deal activity for liquid biofuels, such as biodiesel, ammonia and SAF, is also expected to witness significant growth in 2023 driven by partnerships between corporations - primarily from the industrial and aviation sectors - and project developers. These partnerships enable fuel off-takers to secure long-term supply at competitive prices, while developers gain a strategic partner to propel project development.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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