Kinder Morgan Is Diving Deeper Into Renewable Energy
Kinder Morgan (NYSE: KMI) is one of North America's largest energy infrastructure companies. The bulk of its assets transport, process, store, or export fossil fuels. While that makes it a key player in today's energy market, there are questions about the company's future as the economy transitions to cleaner alternative fuels.
Kinder Morgan is working to address these concerns by slowly transitioning its business toward the fuels of the future. The company recently took another step in that direction. That's only the beginning of what it sees ahead.
Kinder Morgan closed its second RNG deal earlier this month. It purchased three landfill assets from Mas CanAm for $355 million, comprising an RNG facility in Texas and medium Btu facilities in Texas and Louisiana. The Texas RNG facility should produce 1.4 billion cubic feet of RNG next year. Because it's already operational, it will supply Kinder Morgan with incremental cash flow. It also has the potential to grow significantly over the next decade, providing the company with long-term upside potential.
Source Fool.com
