Suburban Propane to acquire RNG assets from Equilibrium Capital Group

January 25, 2023 By    

Suburban Renewable Energy, a subsidiary of Suburban Propane Partners, reached an agreement to acquire a platform of renewable natural gas (RNG) assets from Equilibrium Capital Group.

In addition to Suburban’s purchase of operational biogas facilities in Stanfield, Arizona, and Columbus, Ohio, for $190 million, the companies formed a partnership to serve as a long-term growth platform for the identification, development and operation of additional RNG projects.

The RNG platform in this deal, which includes option rights for a third RNG facility in the Midwest, is diversified across feedstocks, geographies and revenue streams, and complements Suburban Renewables’ activity to construct, own and operate an RNG facility at Adirondack Farms in Peru, New York, the company says.

While the acquisition will enhance and increase Suburban Renewables’ presence in RNG production and distribution, the partnership with Equilibrium will provide growth and management in the rapidly developing waste-to-energy economy. RNG can be produced from multiple organic waste streams, including agricultural and food waste, helping to reduce methane emissions while offering a low-carbon solution as a drop-in replacement for traditional natural gas, the company adds.

“This investment meaningfully advances our strategic goal of building out a renewable energy platform to help drive the energy transition to a low-carbon economy,” says Michael Stivala, president and CEO of Suburban Propane, in a company press release.

“We are excited to be partnering with the Equilibrium team, which has a proven track record of sourcing, developing and managing high-quality renewable natural gas-producing assets,” he adds. “We look forward to building upon and advancing this opportunity as we seek to leverage Equilibrium’s seasoned management team with a well-established network of operators, engineering and construction providers and off-takers, and a strong commitment to sustainable investments. The scalable platform complements our existing portfolio of renewable energy assets, either as a standalone RNG distributor or as a pathway to rDME and hydrogen production.”

Biofuels and RNG are now mainstream commodities in the transition to low-carbon energy and the decarbonization of the economy, says Dave Chen, CEO of Equilibrium Capital.

“The major challenge will be scaling cost-effective production supplies to meet market demand,” he adds. “Equilibrium is taking our experience investing in, developing and operating scalable RNG production infrastructure and partnering with Suburban’s market leadership and expertise in gas logistics, trading and user applications to build assets that drive toward these goals.”

Suburban Propane is a publicly traded master limited partnership headquartered in Whippany, New Jersey. It has been in the customer service business since 1928 and is a nationwide distributor of propane, renewable energy and related products and services, as well as a marketer of natural gas and electricity and an investor in low-carbon alternatives.

Equilibrium Capital Group develops investment strategies and manages assets in sustainable finance and active environmental, social and governance (ESG), focusing on sustainable food and agriculture and carbon transition infrastructure.

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Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at or 216-706-3748.

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