A subsidiary of the Whippany-based Suburban Propane will acquire a platform of new renewable natural gas assets and is forming a partnership with the seller.

Suburban Renewable Energy LLC announced the $190 million purchase of two operational biogas facilities from – and the collaboration with – Equilibrium Capital Group – on Dec. 28.

Suburban Propane is a nationwide distributor of propane and other energy products to local communities in addition to being an investor in low carbon energy alternatives. The wholly owned Suburban Renewable business houses the company’s existing renewable assets: Oberon Fuels, Independence Hydrogen Inc. and Suburban RNG.

The parties have cleared the necessary regulatory approvals for a simultaneous signing and closing of the transactions.

“This investment meaningfully advances our strategic goal of building out a renewable energy platform to help drive the energy transition to a low carbon economy. We are excited to be partnering with the Equilibrium team, which has a proven track record of sourcing, developing and managing high quality renewable natural gas producing assets,” said Suburban Propane President and CEO Michael Stivala.

“We look forward to building upon and advancing this opportunity as we seek to leverage Equilibrium’s seasoned management team with a well-established network of operators, engineering and construction providers and off-takers, and a strong commitment to sustainable investments.

“The scalable platform complements our existing portfolio of renewable energy assets, either as a stand-alone RNG distributor, or as a pathway to [renewable dimethyl ether] and hydrogen production,” Stivala added.

Suburban highlighted a number of other strategic motivations for the deal, including: the immediate scale it offers to the company’s existing renewable energy investments and assets, the opportunities for synergies between acquired assets and the company’s existing investments, and gaining the expertise of the Equilibrium team as well as a platform for accelerated growth in the renewables fuels sector.

Additionally, Suburban said the deal enhances its position in a developing market of RNG as a drop-in replacement for traditional natural gas, and that it will benefit from tax credits under several state low carbon fuel standards and the Inflation Reduction Act of 2022.