Marathon buys interest in LF Bioenergy

Marathon Petroleum Corp. announced Wednesday the purchase of a 49.9% interest in LF Bioenergy, an emerging producer of renewable natural gas in the United States, from Cresta Fund Management for $50 million. The agreement includes the potential for up to an additional $50 million based on the achievement of predetermined earnings targets. LF Bioenergy has been focused on developing and growing 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 continues to expand its portfolio with additional projects while progressing its existing pipeline of opportunities toward final investment decisions. As specific project milestones are achieved, Marathon Petroleum is expected to fund its share of capital expenditures, building out the portfolio. "This RNG transaction demonstrates our commitment to lower carbon investments," said Dave Heppner, Marathon's senior vice president of Strategy and Business Development. "This platform will create the opportunity for further integration and advances (Marathon Petroleum's) goal to lower the carbon intensity of its operations and the products it offers."