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AgLand Renewables receives tax credit for California RNG facilities

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AgLand Renewables, the California subsidiary of CleanBay Renewables, will receive $1.7 million (€1.42 million) in tax credit.

AgLand was chosen by the Governor’s Office of Business and Economic Development (GO-Biz) to receive the significant tax credit from the California Competes Tax Credit (CCTC) programme. With this support, the firm can begin the development of multiple bioconversion facilities in California that will directly support the state’s economic and environmental goals.

AgLand will deploy at least two facilities in California’s Central Valley, home of the state’s vast poultry production industry, over the next five years. The facilities will use anaerobic digestion and fertiliser formation technology to convert poultry litter into RNG and organic, controlled-release fertilisers.

“These state-of-the-art facilities will help grow California’s leadership in climate-smart agriculture, scale-up healthy soils, recycle important nutrients in agriculture, and invest hundreds of millions within hard-hit agricultural communities,” said Karen Ross, Secretary of the California Department of Food and Agriculture.

By converting more than 150,000 tons of chicken litter annually, each facility can generate more than 750,000 MMBtus of RNG, 100,000 tons of organic fertiliser, and an estimated 500,000 tons of CO2e emission abatement that will be available to purchase in carbon markets.

Dee Dee Myers, senior advisor to the Governor and Director of GO-Biz, commented: “Attracting a company like AgLand Renewables to California is exactly why the CalCompetes programme was created.

“Not only will AgLand create well-paying jobs and economic opportunity across the Central Valley, but its solution will help us reach California’s greenhouse gas (GHG) reduction goals while simultaneously supporting the Governor’s healthy soils initiative.”

More than half a millions of poultry litter are produced in the Central Valley annually, which, if uncontrolled, can release significant GHGs and other emissions that affect the local air, soil, and water quality, said CleanBay Renewables’s executive chairman, Thomas Spangler.

“Our sustainable use of poultry litter provides an immediate opportunity to enhance the economic value of the Central Valley’s agricultural industry while simultaneously helping the state meet its low carbon fuel standards and emissions reduction goals,” he said.

The proposed site locations in Kings and Merced Counties were identified with support from the GO-Biz team. Both facilities are expected to be fully operational by 2024.