Marathon Petroleum acquires 49.9% stake in emerging LF Bioenergy

Marathon Petroleum announced the acquisition of a 49.9% interest in LF Bioenergy, an emerging producer of renewable natural gas in the United States, from Cresta Fund Management for $50M. The agreement includes the potential for up to an additional $50M 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. LF Bioenergy’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. 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.