Project Experience

Landfill Energy Systems, Inc. – Pre-Acquisition Due Diligence for Landfill Gas-to-Energy Projects

Technical and financial reviews of potential acquisitions helps industry leader determine landfill’s fuel resource potential

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Cornerstone provides due diligence services for Landfill Energy Systems, Inc. (LES) in support of its prospective acquisition of landfill gas (LFG) utilization projects. Cornerstone works closely with due diligence teams made up of outside financial advisors and legal counsel, as well as LES’s internal personnel. Acquisitions have included single projects, as well as companies with multiple LFG utilization projects. Facilities reviewed include electrical generating (engine and turbine) facilities, direct use projects, and LFG processing facilities capable of producing pipeline-quality gas from LFG for sale to natural gas transmission and distribution systems. Acquisition sites have been across the United States, and have included Innovative Energy Systems, Inc., Timberline Energy, Inc. and Kansas City LFG, LLC.

Cornerstone’s review included all technical aspects of the projects, with a particular focus on the value of the landfill as a fuel resource. Cornerstone developed models to project the amount of LFG produced by the landfill(s) associated with each project and the ability of the facility to collect the LFG produced. Cornerstone also provides input on the adequacy of financial proforma statements and acts as LES’s Independent Engineer for making representations with LES’s financial institutions.

On a number of acquisitions Cornerstone has provided Phase 1 environmental site assessments to assess potential environmental liabilities associated with the potential acquisitions. Cornerstone continues to provide technical support to LES for acquired facilities.

Key Project Activities

  • Project agreement review
  • Project permit review, including air emissions and construction permits
  • Review of the gas generation and collection potential
  • Technical review of the proposed beneficial use equipment and project design
  • Pro forma review to verify operating costs and revenue assumptions
  • Phase 1 environmental site assessments