Viridi Monetizes Section 48 Credits from Alabama RNG Project

Viridi completes its first sale of Section 48 tax credits tied to a landfill RNG project in Alabama, marking a financing milestone as landfill gas projects scale pipeline-quality RNG supply.

(P&GJ) — Viridi Energy has completed the sale of its first federal Investment Tax Credits under Section 48 tied to its landfill gas-to-renewable natural gas (RNG) project at Magnolia Landfill in Baldwin County, Alabama.

The transaction marks Viridi’s first monetization of transferable tax credits associated with a landfill RNG facility and provides additional capital to support methane capture and pipeline-quality RNG production. The Magnolia project upgrades landfill gas into RNG for delivery into energy markets, supporting both emissions reductions and domestic fuel supply.

“Selling our first ITC credits is an important milestone for Viridi and validates our ability to execute and finance projects that deliver real-world outcomes,” said Dan Crouse, CEO at Viridi. “This transaction reflects the intent of federal energy policy: enabling private capital to flow efficiently into domestic clean energy infrastructure enabling transferable tax credits to help accelerate real projects with real outcomes.”

Viridi said proceeds from the transaction will support continued development of landfill RNG infrastructure, including projects designed to supply low-carbon fuel attributes for the U.S. transportation market.

The ITC sale was advised by Mickelson & Co., with Faith Larson serving as broker. Hogan Lovells advised Viridi on the transaction.

“We appreciate the collaboration from all parties involved in this transaction. Bringing together strong counterparties and advisors is essential to executing efficiently and ensuring these projects deliver long-term, reliable performance,” said David Barry, CFO at Viridi Energy.

“We are excited to have participated in this transaction supporting the RNG market,” said Faith Larson of Mickelson & Co. “It was a pleasure to help broker this deal, and through the process we developed a deep respect for the Viridi team and their business model. We look forward to continuing our partnership and collaborating with Viridi as they develop additional RNG projects that monetize Section 48 tax credits, expanding the value these projects deliver.”

Pictured: Viridi Energy's Magnolia RNG Facility