(Bloomberg) -- NextEra Energy Inc. agreed to spend $1.1 billion to buy facilities that convert gas produced by decomposing waste in landfills into electricity as part of its effort to expand into renewable fuels. 

The biggest producer of solar and wind power is purchasing about 30 facilities from Energy Power Partners that will allow it to become a producer of renewable natural gas, which can also be used to make hydrogen. Advocates say both fuels are key for a clean-energy future. 

NextEra plans to invest $400 million so it can refine the gas emanating from rotting waste in landfills, which is currently used to produce electricity, into a renewable form of natural gas. That gas could then be sold to customers, NextEra executives said on the earnings call Friday. The facilities will now qualify for federal tax credits, Rebecca J. Kujawa, head of NextEra Energy Resources, said on the call.

So-called renewable gas has gained traction as climate advocates and environmentally-minded investors put pressure on utilities to show how they plan to reduce emissions. Environmental groups have said that the industry has been promoting renewable gas -- which is limited in supply and expensive -- as a way to preserve their fossil-fuel infrastructure in the face of growing calls for it to be phased out. 

“We’re excited about both landfill gas and alternative forms of renewable natural gas,” Kujawa said. She added that hydrogen from the facilities could be used to produce synthetic jet fuel. “We think this is a great platform from which to grow our renewable fuel business,” she said. 

Landfill gas is a natural byproduct of decomposition in landfills and is made up of methane and carbon dioxide, according to the US Environmental Protection Agency. Renewable natural gas is produced from landfill gas or other sources, doesn’t require fossil fuels to produce and is in demand from utilities and other companies under investor pressure to get greener. 

The deal by NextEra’s competitive clean energy business, NextEra Energy Resources, also includes assuming about $37 million of debt, according to NextEra’s third-quarter earnings release. The transaction is expected to close early next year, and will generate $220 million of adjusted earnings by 2025, according to the statement.

NextEra shares were up over 4% at 1:56 p.m. in New York. 

--With assistance from Gerson Freitas Jr..

(Updates with quotes from earnings call and background throughout)

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