Energy Investors Funds buys 11 landfill gas facilities

By Lisa Gibson | February 22, 2011

Private equity fund manager Energy Investors Funds Renewable Energy Holdings LLC (EIF) recently expanded its portfolio of landfill gas-to-energy operations by acquiring Oakfield, N.Y.-based Innovative Energy Systems and its 11 operating plants in New York and Vermont.

The acquisition was handled through EIF’s subsidiary, Landfill Energy Systems, and boosts its capacity by 72 megawatts, enough to power 42,000 homes, according to EIF. Landfill Energy Systems now has projects in 16 states collectively generating more than 200 megawatts at 45 landfills. The projects reduce carbon dioxide emissions by more than 9 million tons per year, which is equivalent to taking more than 1.7 million cars off the road, according to EIF.

The existing leaders of Landfill Energy Systems and Innovative Energy Systems have formed a joint management team to run the merged portfolios. Peter Zeliff, founder of Innovative Energy Systems, will maintain a minority ownership interest and become chief operating officer at Landfill Energy Systems. “This merger makes so much sense,” Zeliff said. “We already have similar operating philosophies and corporate cultures. The combination gives us the most experienced development and operating team in the industry.”

Landfill Energy Systems is equally excited about the merger, and plans to continue its growth through greenfield development and acquisitions of landfill gas-to-energy projects, it said. It is the fourth major landfill gas-to-energy acquisition by EIF and makes the firm one of the largest landfill gas-to-energy companies in the country. “This transaction builds on EIF’s strategy of investing in a diversified portfolio of energy assets across fuel types and technologies, including significant investments in base load renewable energy,” said Jose Torres-Monllor, a senior vice president of EIF.