LF Bioenergy (“LF”), a renewable energy developer focused on the production of renewable natural gas, announced today that Marathon Petroleum Corporation (NYSE:MPC) has invested in LF at a valuation of $100 million, with the potential to increase to $200 million as LF achieves pre-determined earn-out targets.
“LF Bioenergy is thrilled to have Marathon as an investor. This development benefits our dairy farmer partners by providing LF additional resources to support the long-term plans for our pipeline of RNG projects,” said Brent Lilienthal, President, and CEO of LF Bioenergy. “Marathon’s industry expertise and its goal to lower the carbon intensity of its operations and the products it offers will help LF continue to execute on our “Farmers First” strategy of helping farmers improve their sustainability, operations, and profitability. We intend to leverage Marathon’s capabilities and expertise to accelerate our vision of providing tailored solutions based on the specific needs of our dairy partners.”
LF Bioenergy is backed by Cresta Fund Management (“Cresta”), a growth equity firm with advanced industry knowledge, managing $1.4 billion in assets. “We are excited about the progress LF has made since our initial investment in 2021 as well as the value that Marathon will provide to LF and its stakeholders,” said Chris Rozzell, Cresta’s Managing Partner. “Adding Marathon as a partner is an important milestone for LF, and the partnership between Marathon, LF and Cresta will provide a strong foundation for the ongoing decarbonization of the hard-to-abate agricultural and transportation sectors.”
LF Bioenergy’s first facility, located in upstate New York, is nearing completion and expected to be in service in the first half of 2023. The LF Bioenergy team is determined to grow their portfolio of dairy-based, low carbon intensity RNG projects to produce over 6,500 MMBtu per day by the end of 2026. LF Bioenergy’s farmer-centric approach to RNG development is unique in today’s environment and continues to provide the Company with robust development opportunities.
Weil, Gotshal & Manges LLP represented LF and Cresta in the transaction, and Guggenheim Securities, LLC acted as financial advisor to Cresta and LF in connection with the transaction.