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Sagepoint's RNG Logistics Platform: A Step Towards Sustainable Transportation

In an important leap towards sustainable logistics, Power Sustainable Infrastructure Credit Manager L.P. (PSIC) has recently finalized a senior secured financing to bolster the launch and expansion of Sagepoint Logistics, the trucking division of Sagepoint Energy LLC. This financing effort aims to facilitate the acquisition of a dedicated fleet of Class 8 heavy-duty trucks, alongside necessary fueling infrastructure that significantly enhances Sagepoint's established expertise in renewable natural gas (RNG).

Sagepoint Logistics signifies a strategic extension of the company’s operations into downstream infrastructures, moving from RNG production and dispensing to direct transportation. This enhanced capability shortens the distance from the production of waste-derived fuels to their end-use, thus creating a more coherent and effective logistical approach. The financial backing from PSIC comes after their earlier agreement to support the expansion of Sagepoint's landfill RNG assets, underscoring a growing commitment to sustainable practices.

The newly acquired logistics fleet will utilize trucks outfitted with Cummins’ X15N natural gas engine, a system designed specifically for heavy-duty, long-haul transportation. This state-of-the-art engine promises not only the necessary power and torque required in Class 8 trucking applications but also offers a path towards reducing reliance on diesel, which can lead to lower operational costs and diminished emissions when compared to standard diesel engines. Initially, this fleet will be operational within the Midwest, based in Wisconsin, while the financing arrangement provides room for future growth and fleet expansion.

The Managing Director of PSIC, Daniel Fein, expressed enthusiasm about this venture, highlighting it as an essential step to integrate renewable natural gas with transportation needs. He noted that Sagepoint Logistics serves as a crucial market driver for RNG, providing a viable solution for commercial customers looking to diminish their carbon footprints compared to traditional diesel solutions. This financing initiative aligns perfectly with PSIC’s long-term strategy to invest in infrastructure enterprises that possess robust assets, adept management teams, and clear growth trajectories.

Aaron Johnson, the Chief Executive Officer of Sagepoint Energy, emphasized the importance of PSIC as a strategic partner during their growth phases. Following the expansion of their landfill RNG production capabilities, the custom financing structure crafted by PSIC for Sagepoint Logistics grants them the flexibility needed beyond typical fleet financing solutions. This partnership not only equips Sagepoint to link their RNG production with the transportation sector but also prepares them to scale their operations significantly in both fleet size and geographic reach.

The recent investment activity is indicative of PSIC’s commitment to provide tailored financing solutions targeted at businesses striving to improve resource efficiency and contribute to carbon reduction strategies. Their investment spectrum embraces various sectors, including power and energy, transportation, logistics, digital infrastructure, utilities, and waste management, amassing a total capital commitment of roughly $1 billion across North America to date.

Legal advice during this transaction was provided by Haynes and Boone, LLP for PSIC and by Moore & Van Allen for Sagepoint.

About Power Sustainable

Power Sustainable is an innovative multi-platform alternative asset manager, dedicated to investing within essential sectors of the real economy that are currently undergoing transformative changes. The company selectively allocates capital across energy, food, mobility, connectivity, and built environments, focusing specifically on investments that demonstrate resilience, transition capabilities, and resource efficiency. Power Sustainable proudly operates as a subsidiary of Power Corporation of Canada (TSX POW), which is a prominent international management and holding entity concentrated on financial services throughout North America, Europe, and Asia.

About Sagepoint Energy

Sagepoint Energy is at the forefront of developing and operating waste-to-energy solutions, underpinned by a team of experienced professionals based in Carmel, Indiana. The company is carving a unique niche in the market through their fully integrated RNG platform, managing the entire economic cycle from feedstock sourcing to fuel consumption. Sagepoint is set to lead the charge in sustainable logistics, gradually redefining how transportation can integrate with renewable energy sources.

Learn more about these initiatives at Power Sustainable and Sagepoint Energy.