HASI Invests in Water Infrastructure at Pasco Resource Center

HA Sustainable Infrastructure Capital (HASI) has initiated its strategic expansion into the water infrastructure sector through a recent equity investment in the Pasco Resource Recovery Center. This pivotal transaction, finalized in July 2026, marks a significant diversification for HASI, signaling a commitment to a critical and growing segment of the environmental services market.

The Pasco facility, operated by Burnham RNG, is a sophisticated wastewater treatment and reuse operation. It employs anaerobic digestion to process effluent from seven major industrial food-processing entities in the region. This advanced system not only diverts substantial volumes of wastewater from traditional disposal but also champions resource circularity by recycling over one billion gallons of water annually for agricultural irrigation. This reuse is crucial for supporting local food production and reducing strain on freshwater resources, a growing concern in many arid and semi-arid regions.

Beyond water reclamation, the Pasco Resource Recovery Center generates valuable byproducts. The anaerobic digestion process yields renewable natural gas (RNG), a cleaner energy alternative that can displace fossil fuels in various applications. Additionally, the facility produces nutrient-rich soil amendments, which enhance agricultural land quality and reduce the need for synthetic fertilizers. This integrated approach underscores the facility's role in promoting both environmental sustainability and economic efficiency within the local ecosystem.

Established as a collaborative effort between Burnham and the City of Pasco, the center commenced operations in 2025, succeeding the city's prior Process Water Reuse Facility. Its expanded capacity now supports the irrigation of approximately 1,900 acres of city-owned farmland, demonstrating a tangible impact on regional agricultural output and land management practices. The investment by HASI is underpinned by a long-term, 30-year wastewater treatment agreement with the City of Pasco, a structure designed to deliver stable, contracted cash flows and mitigate operational risks.

Annmarie Reynolds, co-chief investment officer at HASI, expressed enthusiasm for this new investment avenue, stating, "We are eager to deploy further capital into water infrastructure and amplify our positive environmental and economic contributions." This sentiment was echoed by Chris Tynan, CEO of Burnham RNG, who characterized the deal as "a robust initial engagement with HASI," hinting at potential for future collaborations as the partnership evolves and potentially scales.

The water infrastructure market is experiencing heightened investor interest, driven by aging municipal systems, increasing regulatory demands for water reuse, and the growing need for sustainable resource management. Investments like HASI's in the Pasco Resource Recovery Center align with broader trends in environmental, social, and governance (ESG) investing, where projects offering both financial returns and demonstrable societal benefits are increasingly sought after. The facility's dual role in water recycling and renewable energy generation positions it as a model for integrated resource recovery solutions.