Dynamic Renewables Receives Strategic Investment from Ares Management

MENASHA, Wis.--Dynamic Renewables (“Dynamic” or the “Company”), a full-service developer, owner and operator of waste management and anaerobic digestion renewable fuel projects across the U.S., announced today that a fund managed by Ares Management’s Infrastructure Opportunities strategy (“Ares”) has made a strategic investment to acquire the Company. In addition, an unregulated affiliate of NorthWestern Energy (“NorthWestern”) has acquired a small minority stake in the Company. The investment from Ares, a leading infrastructure investor with approximately $14.9 billion in infrastructure equity and debt assets under management as of March 31, 2023, is intended to support Dynamic in the further development and construction of its broader pipeline of renewable natural gas (“RNG”) assets located throughout the U.S.

Founded in 2011, Dynamic is a leading fully integrated origination, development, financing and operations platform that provides waste recovery solutions focused on the dairy and food processing industries. Dynamic has a material project development pipeline and is currently overseeing the construction of six assets, which are expected to be operational by the end of 2023 and forecasted to generate a combined total of more than 4,000 MMBtu per day of renewable natural gas. These six projects are projected to mitigate more than 300,000 metric tons of carbon dioxide emissions per year.

Dynamic is also the owner of BC Organics, a flagship asset developed by the Company. Located in Brown County, Wisconsin, BC Organics is a large-scale biorefinery facility that sources dairy manure feedstock from eleven multigenerational farms and comprises sixteen anaerobic digester tanks capable of processing 900,000 gallons of manure per day. BC Organics will produce carbon negative transportation fuel and provide its partner dairy farms with a long-term, sustainable manure management solution that converts the feedstock into clean water and reusable animal bedding.

Dynamic is led by its co-founders – Chief Executive Officer Duane Toenges, Chief Technology Officer Dan Nemke and Executive Vice President of Special Projects Karl Crave – who have worked together in the anaerobic digestion industry for nearly two decades.

“We are excited about the business we have built in Dynamic and our current momentum,” said Mr. Toenges. “Ares brings a wealth of experience in investing and developing projects in the renewable natural gas industry. They have expressed their support for the Company and our strategy in achieving our next phase of growth. Further, the recent commissioning of our BC Organics project is a tremendous milestone for Dynamic, and we look forward to completing additional projects this year for our strategic partners.”

“We are thrilled to partner with Dynamic, and our investment is aligned with Ares’ commitment to accelerate the transition to a lower-carbon economy through the Company’s innovative waste management and anaerobic digestion capabilities,” said Andy Pike, Partner and Co-Head of Ares Infrastructure Opportunities. “Dynamic has a demonstrated track record of leadership in the rapidly growing renewable fuels sector, and we look forward to working together to build out its pipeline while supporting local communities in delivering more sustainable waste management practices.”

“We are pleased to further our existing relationship with Dynamic with this minority investment in the Company,” said Brian Bird, President and Chief Executive Officer of NorthWestern. “The investment in Dynamic is a positive step for NorthWestern in meeting its net zero goals and a great opportunity to expand the RNG production capabilities of our service territory and its surrounding area. We are excited about the growth of the RNG industry, the carbon negative fuel that Dynamic’s assets will generate, and the complementary nature of this investment with our long-term goals.”

Lazard acted as financial advisor to Dynamic on the transaction. Husch Blackwell served as legal counsel to Dynamic. Latham & Watkins LLP served as legal counsel to Ares.

About Dynamic Renewables

Dynamic Renewables was founded in 2011 and is a full-service development company that provides leading-edge waste recovery solutions to the agricultural and food processing industries. Dynamic Renewables has finance, design, development, and operations capabilities which support its portfolio of operating and development-stage renewable natural gas assets. In 2023, Dynamic Renewables commissioned the BC Organics asset, one of the largest dairy-based anaerobic digestion projects in the U.S. For more information, please visit www.dynamic-renewables.com.

About Ares Management

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2023, Ares Management Corporation's global platform had approximately $360 billion of assets under management, with more than 2,600 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

About NorthWestern Energy

NorthWestern Corporation d/b/a NorthWestern Energy (Nasdaq: NWE) provides essential energy infrastructure and valuable services that enrich lives and empower communities while serving as long-term partners to our customers and communities. We work to deliver safe, reliable, and innovative energy solutions that create value for customers, communities, employees, and investors. We do this by providing low-cost and reliable service performed by highly-adaptable and skilled employees. We provide electricity and / or natural gas to approximately 764,200 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. We have provided service in South Dakota and Nebraska since 1923 and in Montana since 2002. For more information, please visit www.northwesternenergy.com.