California Public Utilities Commission Conditionally Approves RNG Procurement Contract from Anaergia’s SoCal Biomethane Facility

(Anaergia/Business Wire) Anaergia’s Facility To Be The First Project To Supply RNG Under Senate Bill 1440 - California’s Biomethane Procurement Program -- Anaergia Inc. (“Anaergia” or the “Company”) (TSX: ANRG; OTCQX: ANRGF) reports that the California Public Utilities Commission (“CPUC”) has conditionally approved a long-term biomethane procurement contract between Anaergia’s SoCal Biomethane LLC (“SoCal Biomethane”) facility, Anew Climate LLC, and Southwest Gas. The project will be the first to supply RNG under California’s Senate Bill (SB) 1440 Biomethane Procurement Program.

This positions Anaergia at the forefront of California’s decarbonization strategy and effort to scale renewable natural gas (“RNG”) produced from organic waste. California SB 1383 targeted a dramatic reduction in organic waste, and SB 1440 now establishes a requirement on California’s Investor-Owned Utilities (IOU) to procure RNG derived from landfill-diverted organic waste at a scale equivalent to approximately 55 facilities the size of SoCal Biomethane by 2035.

Anaergia’s SoCal Biomethane facility is located at the Victor Valley Wastewater Reclamation Authority (“VVWRA”) and co-digests organic waste and municipal wastewater to produce biogas that is upgraded to RNG and injected into the gas pipeline for distribution. The facility can accept up to 104,000 tons of diverted organic waste annually and has the potential to reduce emissions by up to 31,710 MTCO2e per year, equivalent to emissions from approximately 7,400 gasoline-powered passenger vehicles annually. The project also provides local economic benefits to Victorville, Apple Valley, and Hesperia by employing local staff.

“Anaergia is proud that our facility will be the first to supply SB 1440-qualified RNG in California,” said Assaf Onn, Anaergia’s Chief Executive Officer. “This milestone demonstrates how existing wastewater infrastructure can be leveraged to rapidly scale RNG supply from organic waste as mandated by California laws SB 1383 and SB 1440.”

“Long‑term offtake agreements from natural gas utilities support state climate goals, and we appreciate the CPUC’s leadership in advancing projects that deliver real, local emissions reductions,” said Ryan Childress, Managing Director of Low Carbon Fuels at Anew Climate. “This is a meaningful step toward scaling renewable, baseload energy.”

Darron Poulsen, General Manager of the Victor Valley Wastewater Reclamation Authority, added, “VVWRA is proud to be part of California’s first project delivering RNG under Senate Bill 1440. Wastewater facilities like ours are uniquely positioned to turn organic waste into clean, renewable energy, and this partnership with Anaergia shows just how impactful that collaboration can be. SB 1440 provides a critical framework that accelerates the development of projects that reduce methane emissions, support grid reliability, and strengthen local communities. We strongly support this legislation and look forward to continuing our work with Anaergia to advance sustainable, cost‑effective solutions for the Victor Valley and the State of California.”

Sam Wade, VP of Public Policy for RNG COALITION, said “The SoCal Biomethane facility is a great example from which California can build. Our state can and should retrofit other existing wastewater plants in the state to process organic waste, reduce greenhouse gases, and generate renewable natural gas, a low-carbon alternative to fossil fuels consumed across society. We applaud all parties involved, including multiple Coalition members, for their leadership on this important breakthrough project."

Anew Climate, LLC, is a global leader of diverse climate solutions built on the principles of transparency and accountability. With an expansive portfolio of low and negative carbon fuels, Anew Climate delivers tailored solutions that reduce emissions and accelerate sustainability goals across diverse market segments. Anew is majority owned by TPG Rise, TPG’s global impact investing platform. The company has offices in the U.S., Canada, Germany, Hungary, and Spain with an environmental commodities portfolio that extends across five continents.

VVWRA serves a 279 square mile area that includes Apple Valley, Hesperia, Victorville, Spring Valley Lake, and Oro Grande. VVWRA treats about 12 million gallons of wastewater per day. Wastewater that comes to the VVWRA plant goes through an extensive cleaning and disinfection process before being returned to the Mojave River as recycled water through direct discharge to the river or through percolation ponds located on VVWRA property.

RNG COALITION is the non-profit association providing industry leadership, education and advocacy for RNG development as a sustainable source for clean fuel, heat, power, products and services.

Anaergia is a pioneering technology company in the RNG sector, with hundreds of patents dedicated to converting organic waste into sustainable solutions such as RNG, fertilizer, and water. It is committed to addressing a significant source of greenhouse gas (“GHG”) emissions through cost-effective processes. Our proprietary technologies, combined with our engineering expertise and vast experience in facility design, construction, and operation, position Anaergia as a leader in the RNG industry. With a proven track record of delivering hundreds of innovative projects over the past decade, we are well-equipped to tackle today’s critical resource recovery challenges through diverse project delivery methods. As one of the few companies worldwide offering an integrated portfolio of end-to-end solutions, we effectively combine solid waste processing, wastewater treatment, organics recovery, high-efficiency anaerobic digestion, and biomethane production. Additionally, we operate RNG facilities owned by us, by third parties, or through joint ventures. This comprehensive approach not only reduces environmental impact but also significantly lowers costs associated with waste and wastewater treatment while mitigating GHG emissions.