Marathon Petroleum acquires interest in LF Bioenergy

The emerging renewable natural gas producer has been focusing on the development and growth of a portfolio of dairy farm-based, low carbon intensity RNG projects.

Marathon Petroleum announced the acquisition of a 49.9% interest in LF Bioenergy, an emerging producer of renewable natural gas (RNG) in the United States.

The company purchased LF from Cresta Fund Management for $50 million. The sale’s agreement includes the potential for up to an additional $50 million based on the achievement of predetermined earn-out targets.

LF Bioenergy has been focused on developing and growing a portfolio of dairy farm-based, low carbon intensity RNG projects. Current projects are under various stages of development, with the first facility nearing completion and expected to be in service in the first half of 2023.

The firm's management and origination teams continue to expand the portfolio with additional sanctioned projects while progressing their existing pipeline of opportunities toward final investment decisions.

"This RNG transaction demonstrates our commitment to lower carbon investments. This platform will create the opportunity for further integration and advances MPC's goal to lower the carbon intensity of its operations and the products it offers," said Dave Heppner, Senior Vice President of Strategy and Business Development at Marathon.

As specific project milestones are achieved, MPC is expected to fund its share of capital expenditures, building out this portfolio to produce over 6,500 MMBtu per day by the end of 2026.